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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.

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ZBC Highlights Modernisation and Decentralisation at ZITF

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ZBC Highlights Modernisation and Decentralisation at ZITF

The Zimbabwe Broadcasting Corporation (ZBC) says it is embracing modern technology and decentralisation to remain competitive in the broadcasting industry.

Speaking at the Zimbabwe International Trade Fair (ZITF), ZBC Board Chairperson Helliate Rushwaya said the organisation’s participation aligns with this year’s theme.

“The theme is connected economies and competitive industries. So at ZBC, through the various platforms that we are showcasing, we are showing that we are being competitive with regard to modern platforms,” she said.

Rushwaya added that the use of digital technology is helping ZBC strengthen its position in the broadcasting sector.

“Modern technology and the use of digital platforms are also highlighting that we are connecting and we are connected in a competitive industry, which is the broadcasting industry,” she said.

She explained that the corporation’s modernised studios go beyond infrastructure upgrades and are part of a broader strategy to improve operations.

“These modernised studios are not just about new equipment or new infrastructure; they are beyond that,” she said.

Rushwaya said Montrose Studios is now playing a key role in decentralising operations from Pockets Hill in Harare.

“For us, Montrose is more about decentralisation from Pockets Hill. We are now also using Montrose Studios, not just for local productions,” she said.

She noted that the studios are becoming a hub for creative industries in the southern region and are also being used for major national events.

“We know Montrose Studios is the hub for creative industries in the southern regions, but also Montrose Studios is now coming in really useful in terms of national events,” she said.

Rushwaya highlighted recent productions handled from Bulawayo, including national broadcasts.

“Only a week ago, we were broadcasting the independence celebration from Mapisa using Montrose Studios for our productions. At the moment, we are at ZITF. Again, Montrose Studios are playing a really important role in terms of all our broadcasting,” she said.

She emphasised that the shift is not just about upgrading equipment but about expanding operations beyond Harare.

“So it’s not about modernisation only. This actually also is about decentralisation from Pockets Hill to Bulawayo,” she said.

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Diaspora Skills Key to Turning Brain Drain into Brain Gain

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Muswere Brain Drain into Brain Gain

The government has intensified efforts to harness skills from both within the country and the diaspora as part of a broader strategy to drive economic growth and industrialisation.

Speaking on the Diaspora Skills Platform, the Minister of Skills, Audit and Development, Jenfan Muswere, said the initiative focuses on “upskilling, skilling and reskilling” citizens to meet national development needs.

“But turning to the precise question in terms of the Diaspora Skills Platform, which is of great importance in terms of us as a nation to be able to turn brain drain into brain gain,” Minister Muswere said.

Muswere explained that government is conducting comprehensive skills audits locally, internationally, and among retired professionals to identify expertise that can support the economy.

“This is one of the objectives that we’ve committed to ensure that as we work on ensuring that we have a skills audit internally, a skills audit externally and also a skills audit in terms of retired experts both within and outside Zimbabwe in order to support macroeconomic growth,” he said.

He noted that the country has faced significant challenges due to the migration of skilled professionals, particularly in technical, health, and engineering sectors.

“But at the same time, to highlight that a number of technical, health, and engineering skills flights were some of the biggest challenges that we faced as a country for the past decades,” he said.

Muswere highlighted the importance of value addition, using lithium exports as an example of missed opportunities due to limited local processing capacity.

“If you are going to export raw lithium at some point at a price of less than $200 per tonne, but the rest of the value addition process is taking place externally to a value of around $20,000 per tonne, this clearly shows us the skills gap in terms of processing,” he said.

He stressed that building a strong skills base is key to reducing imports and boosting local production.

“So basically, what you import, when you import toothpicks, means you are failing to produce toothpicks. When you import cooking oil, it means you are failing to produce,” he added.

Muswere said the government is working closely with various ministries to align skills development with industry demands.

“As we collaborate and coordinate skills within provinces, this is also part of a whole-of-government approach,” he said.

He added that human capital remains central to achieving national development goals, including Vision 2030.

“For the most dynamic resource that we have in any nation is the human resource, which has always been a priority in terms of both NDS1 and NDS2,” he said.

Muswere also pointed to opportunities in the health sector, where diaspora expertise can be leveraged through modern technologies.

“But now within the context of the fourth industrial revolution, we can also utilise telemedicine using ICT, utilisation of artificial intelligence, for us to be able to come up with a number of solutions in terms of health service delivery,” he said.

He concluded that Zimbabwe must transition towards a demand-driven education system that responds to economic needs.

“As we continue to develop this, it becomes part of a national manpower plan… in order to ensure that we have a demand-driven education system, not a supply-driven education system,” he said.

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Bulawayo Commuters Call for Mutare-Style Crackdown on Violent Rank Touts

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Bulawayo Commuters Call for Mutare-Style Crackdown on Violent Rank Touts

Commuters in Bulawayo are urging authorities to replicate the “Mutare model” at the city’s bus termini following a successful security operation in Mutare that dismantled illegal taxi rank cartels.

The nationwide enforcement campaign, led by the Joint Operations Command (JOC) comprising the Zimbabwe Republic Police, Zimbabwe National Army, and Zimbabwe Prisons and Correctional Service has already restored order in several urban transport hubs, particularly in Mutare.

In the eastern border city, authorities recently arrested 57 suspected touts in a coordinated operation targeting what officials described as entrenched extortion networks at bus ranks.

Acting Manicaland provincial police spokesperson Assistant Inspector Wiseman Chinyoka said law enforcement teams remain active on the ground to maintain pressure on offenders.

“Our teams moved in swiftly and made 57 arrests. We are committed to sustaining operations until the situation is fully under control,” he said.

The developments in Mutare have sparked growing calls in Bulawayo for similar interventions at busy ranks such as Entumbane, Renkini, and 6th Avenue, where commuters say illegal fees and intimidation remain widespread.

Some residents argue that only a coordinated multi-agency response can dismantle what they describe as deeply rooted criminal networks.

“The police alone are sometimes overwhelmed. We need a joint operation like in Mutare so that commuters are protected,” said Mr Sibangilizwe Ndlovu, a frequent traveller at Entumbane rank.

Another resident, Miss Khethiwe Moyo, said Bulawayo deserves the same level of security now seen in Mutare.

“We hear that Mutare is now peaceful. We want the same here. Authorities must show that law and order still prevail,” she said.

Before the crackdown, touts in Mutare were reportedly demanding illegal loading fees of around US$2 per passenger, often backed by intimidation and harassment of bus crews and travellers.

The seriousness of the issue was also highlighted by a separate incident in Harare, where Tafadzwa Simbarasi was arrested for allegedly leading a blockade against a bus company after it refused to pay illegal rank fees.

Commuters such as Mrs Alice Mutasa described the situation prior to the interventions as unbearable, citing daily harassment and extortion at bus terminals.

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