Current Affairs
Business simplification: CZR, ZIMRA New Collaboration
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
Local Government cracks down on ‘Fundraising’ workshops for Councils
Itai Mazire
The Ministry of Local Government and Public Works has issued a stern directive to local authorities, urging them to cease participation in non-essential workshops and conferences perceived as mere fundraising ventures by external entities.
The move, outlined in a memorandum signed by Permanent Secretary Dr. John Basera on 14 May 2026, shows a critical shift towards prioritizing efficient service delivery amidst ongoing financial challenges.
The memorandum highlights a growing concern within the ministry regarding the proliferation of such events.
“It has been noted with concern that some institutions and entities are organising workshops and conferences targeting local authorities primarily for their fundraising purposes,” said Dr Basera.
This directive comes as local authorities grapple with
depressed revenue collection.
The Ministry emphasizes the need to re-direct resources towards core functions.
“Considering the current challenges facing local authorities, particularly depressed revenue collection and the need to prioritize efficient service delivery, it is imperative that available resources be directed towards operational and service delivery-related activities,” he said.
Local authorities are now advised to significantly reduce their involvement in events that do not directly contribute to improving public services.
The memorandum explicitly warns against arrangements that offer little to no tangible benefit.
“Accordingly, local authorities should not support or tolerate arrangements by third-party entities requiring the purchase of tables, payment of conference fees, accommodation costs and related expenditures which offer limited or no tangible value to service delivery outcomes.”
This new position is effective immediately and will remain in force until further notice, signaling a resolute effort by the Ministry to streamline operations and ensure accountability in resource allocation within local governance.
Current Affairs
Malaba Urges Proper Governance in Farewell Address
Retired Chief Justice Luke Malaba called for governance that serves all citizens and praised inter-branch cooperation as he delivered the vote of thanks at his retirement ceremony.
Speaking at a special sitting of the Constitutional Court, Malaba said the rule of law requires leaders to govern properly and create conditions for others to thrive.
Malaba said he leaves a vision of a Zimbabwe that all citizens can be proud to belong to, built on revolution, reform and adding value to people’s lives. He said he was proud to have lived and worked in government until his retirement
“Let us have a vision of a Zimbabwe where we can all be proud to belong. The vision of a revolution, the vision of reform, the vision of adding value to the lives of the people,” Malaba said.
He noted there is no rulebook defining what a Chief Justice should do, saying it falls to the person in office to create and innovate. Malaba said creation is only possible when those in power allow it and respect the judiciary’s role.
“There are no rules, there is no definition of what a Chief Justice should do. It is that person who is in an office of a Chief Justice who must create,” he said.
Malaba credited the executive and legislative arms for allowing the judiciary to operate independently. He said the progress was not his achievement alone but the result of many in government.
“The three arms of government have worked marvelously allowing the judiciary to pursue independently what is best for the country. It is a journey by many people in government,” he said.
Current Affairs
Bulawayo Resident Dies from Acute Gastro-enteritis Amidst Contaminated Water Concerns
Bulawayo, Zimbabwe – A tragic incident in Bulawayo has highlighted critical public health concerns, with a resident succumbing to acute gastro-enteritis, commonly known as stomach flu. The death is reportedly linked to the consumption of contaminated borehole water in Pumula South, following disruptions to the municipal reticulated water supply.
The unfortunate fatality was documented in the latest health surveillance report issued by the Bulawayo City Council (BCC). Investigations detailed in the report indicate that the deceased did not seek timely medical intervention, leading to severe diarrhea and dehydration that ultimately proved fatal. Post-mortem examinations confirmed that the patient died from hypovolemic shock, a direct consequence of acute gastro-enteritis.
Further compounding the household’s distress, another individual within the same residence subsequently fell ill. Fortunately, this person recovered after receiving treatment at Mpilo Central Hospital, underscoring the severity of the water contamination.
Laboratory tests conducted on water samples from the affected borehole in Pumula South revealed significant contamination, specifically identifying the presence of non-faecal coliforms. This finding points to a serious breach in water safety standards, posing a substantial risk to public health.
Council health officials noted challenges in their investigation, as family members reportedly declined stool sampling and contact tracing efforts. This non-cooperation can impede comprehensive epidemiological assessments and the implementation of effective public health interventions.
The broader context of Bulawayo’s water infrastructure raises further alarms. Recent council water quality checks indicated that a staggering 62% of water points tested across the city failed one or more safety criteria, including instances of faecal contamination. This widespread issue has impacted numerous public facilities, including schools and clinics, in areas such as Nkulumane, Emganwini, and Luveve.
Adding to the crisis, the council’s most recent environmental health report also brought attention to persistent sewer overflows in Emganwini and numerous complaints regarding foul-smelling water in various residential zones. The report explicitly warned that the city’s aging sewer systems and the increasing pressure on existing water networks are significantly elevating public health risks.
In March alone, Bulawayo recorded 247 cases of diarrhea, with one fatality, as detailed in the report. Residents in the western suburbs, particularly affected by the worsening water situation, voiced their concerns, stating that they often have no alternative but to rely on potentially unsafe borehole water sources.
In response to these alarming developments, council health officials have issued an urgent advisory. Residents are strongly urged to boil or disinfect any water obtained from unverified sources. Furthermore, they emphasize the critical importance of seeking immediate medical attention for symptoms such as diarrhea, vomiting, and dehydration to prevent further tragic outcomes.
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