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Business simplification: CZR, ZIMRA New Collaboration

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The Confederation of Zimbabwe Retailers (CZR) and the Zimbabwe Revenue Authority (ZIMRA) have launched a joint initiative aimed at simplifying business processes and promoting fair taxation, in a move expected to drive economic growth and improve compliance.

This collaborative effort seeks to streamline tax obligations, reduce administrative burdens, and create a more business-friendly environment.

Speaking during the CZR-ZIMRA Stakeholder Engagement Meeting, CZR President Dr. Denford Mutashu urged ZIMRA to urgently review current tax systems to improve the ease of doing business in the retail and wholesale sectors. He highlighted the importance of improving tax compliance within the informal sector.

“Many informal traders operate outside the tax net and are not subject to VAT or other obligations. This makes their products appear cheaper than those from compliant formal businesses, distorting fair competition,” said Dr. Mutashu.

He proposed that ZIMRA remove the current 5% withholding tax on sales made to non-tax-compliant customers and called for a simplified tiered presumptive tax system to encourage voluntary compliance among informal traders.

Dr. Mutashu also recommended that Taxpayer Identification Numbers (TINs) be made mandatory when applying for shop, trading, and liquor licenses to enhance tracking and enforcement.

During the engagement, he posed a question to ZIMRA Acting Commissioner for Domestic Taxes, Mrs. Mupanduki, regarding the proportion of revenue currently collected from the informal versus formal sectors. He also raised concerns about Route-to-Market (RTM) restrictions.

“Current RTM policies require even small walk-in customers to present VAT registration and tax clearance certificates to purchase goods at wholesale prices. This hinders competitiveness and discourages bulk buying,” he said.

CZR called on ZIMRA to review and relax RTM requirements to enhance market access and support formal wholesalers.

Concerns Over IMTT, Delayed Refunds, and VAT on Overheads
CZR raised further concerns over the Intermediated Money Transfer Tax (IMTT), noting that it disproportionately affects formal businesses that rely on electronic payments, while the largely cash-based informal sector escapes the tax.

They proposed:

  • Reducing the IMTT rate to 1% for US$1 transactions
  • Waiving the IMTT entirely for ZIG transactions

Dr. Mutashu also inquired about when the IMTT would be reviewed or removed, citing its adverse effects on formal retailers.

He further expressed concern over delayed tax refunds, particularly VAT refunds, which are often held up for over a year, impacting liquidity.

“ZIMRA charges interest on late tax payments, yet there is no compensation when the tax authority delays refunds,” he noted.

CZR recommended that ZIMRA:

  • Establish clear turnaround timelines for tax refunds
  • Apply interest on overdue refunds owed to taxpayers

On the issue of VAT on overheads, CZR pointed out that businesses selling VAT-exempt basic commodities cannot reclaim input VAT, increasing operational costs and threatening viability for low-margin retailers.

The organisation called for a review of VAT policies, particularly on reclaiming VAT on overheads for retailers of basic goods.

Dr. Mutashu also highlighted flaws in the PAYE system, citing discrepancies between calculations on ZIMRA’s TARMS platform and company payroll systems. He noted that employees with incorrect or unregistered national IDs could not be processed in TARMS.

“There’s no option to use a generic employee number when submitting VAT on such employees,” he said, recommending interim solutions like generic codes and better system alignment.

Rising property tax was also flagged, with landlords transferring increased tax costs to tenants, adding to the financial strain on retailers.

ZIMRA also raised its own concerns about the treatment of goods at ports of entry, especially regarding inspections.

“Trucks headed to their final destinations are being intercepted and redirected to Bak Storage, despite prior checks at the border,” said a ZIMRA representative.
“This causes delays and results in additional costs for storage, labor, and handling. Some shipments are also being damaged during re-inspection.”

In response to the issues raised, ZIMRA reaffirmed its commitment to improving the ease of doing business and expressed support for the tiered presumptive tax model.

The authority encouraged the increased use of plastic money for tax administration purposes and acknowledged resource constraints in fully integrating the informal sector into the tax system. It was noted that informal sector taxes are now collected during license renewals.

Commissioner Mrs. Mupanduki concluded by reiterating ZIMRA’s stance on transparency and reform, adding that the fight against corruption remains a top priority for the authority.

Current Affairs

Bulawayo–Victoria Falls Road Project Gains Momentum

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Construction works on the Bulawayo–Victoria Falls Road Rehabilitation and Upgrading Project, particularly along the Cross Dete section, are progressing steadily, with contractors maintaining momentum in line with the project’s implementation schedule.

The project, which is a key component of Zimbabwe’s national road infrastructure development programme, is focused on rehabilitating and upgrading the strategic highway to improve road safety, driving comfort, and overall transport efficiency. Current works include road widening, resurfacing, drainage improvements and the installation of modern traffic safety features.

Once completed, the upgraded road is expected to significantly strengthen connectivity between Bulawayo and Victoria Falls, a major tourism hub, while also enhancing the movement of goods and services along the corridor. Authorities say the project will play a vital role in boosting tourism, facilitating trade, and stimulating economic growth in Matabeleland North and surrounding regions.

Meanwhile, road users have been urged to exercise patience and caution while travelling through construction zones. Traffic management measures, including temporary diversions and speed restrictions, have been put in place to safeguard motorists, pedestrians and construction personnel.

The Bulawayo–Victoria Falls Road upgrade underscores the Government’s commitment to modernising critical transport infrastructure and supporting long-term socio-economic development across the country.

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President Mnangagwa’s Office Cracks Down on Illegal Motorcades and Abuse of State Privileges

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The Office of the President and Cabinet has issued a stern warning against the rising abuse of government symbols and road privileges, declaring that illegal motorcades, misuse of government stickers, unauthorised blue lights and vehicles without licence plates will no longer be tolerated.

In a strongly worded statement, the President’s Office expressed serious concern over individuals masquerading as government officials by affixing state stickers and flashing blue lights on private vehicles in order to unlawfully bypass tollgates, police roadblocks and traffic controls.

The practice, the Office said, is not only illegal but also undermines public order, road safety and the authority of law enforcement agencies.

Equally worrying, according to the statement, is the growing number of vehicles operating on public roads without licence plates, a development that poses a major security risk and complicates crime prevention and traffic enforcement efforts.
“The abuse of state privileges and symbols is creating chaos on the roads and placing other motorists and law enforcement officers at risk,” the President’s Office warned.

Authorities have now been instructed to act decisively, with the Office making it clear that anyone found engaging in these practices will be arrested and prosecuted, regardless of status or perceived connections.

The warning signals a zero-tolerance approach as government moves to restore discipline, order and respect for the law on Zimbabwe’s roads. Law enforcement agencies have been directed to intensify checks, remove illegal stickers and lights, and impound vehicles operating outside the law.

The President’s Office urged all motorists to comply fully with traffic regulations, stressing that only duly authorised government vehicles are permitted to use official insignia and emergency lights.

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ZRP Issues Public Warning After Dam Wall Burst Destroys Bridges in Zaka

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The Zimbabwe Republic Police (ZRP) has issued a public safety alert following the bursting of two dam walls at Riverton Farm in Zaka District, Masvingo Province, which has resulted in the destruction of key local bridges.

According to the police, the dam walls burst on 12 January 2026, causing extensive flooding that swept away Chipinda and Mutakaya bridges, which cross the Chiredzi River and provide vital access routes for surrounding communities.

The destruction of the two bridges has left them completely impassable, both to motor vehicles and pedestrians, effectively cutting off movement between villages that rely on these crossings.

ZRP has urged residents in Masvingo Province and surrounding areas, particularly those travelling to or from Chipinda and Mutakaya, to exercise extreme caution and avoid the affected areas.

Members of the public have been advised to use alternative routes until the situation is fully assessed and normal conditions are restored.

“The public is advised to remain alert and strictly avoid attempting to cross the damaged bridges, as doing so poses a serious risk to life,” the police said.

The ZRP confirmed that it has engaged the Department of Civil Protection Unit (CPU) to assess the extent of the damage and coordinate necessary emergency and safety interventions. Further updates will be released as more information becomes available.

The Police continue to monitor the situation closely as heavy rains persist in parts of the province, raising concerns over flooding and infrastructure damage.

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