20 January 2018
   
Tsvangirai golden handshake confirmed
DisGrace sneaks out three luxury cars
ED cuts Bob Singapore crew from 38 to 22
Call for Diaspora Minister and MPs
ED so over confident it worries him
Priscilla demands coup ‘killings’ details
CBD maize roasting must end now: Min
Tsvangirai faces disgraceful exit: Judge
MORE NEWS
ZTA targets domestic tourism
SOE DEBATE: Privatise most parastatals
MORE BUSINESS
Delight as ZBC 'Iron Lady' suspended
Sulu arrested over $4,000 child support
MORE SHOWBIZ
Mapeza targets CAF CL group stages
Tendai Ndoro special - says Ajax coach
MORE SPORTS
Elections: Not a moment to be lost
A view beyond the Zimbabwe coup
MORE OPINION
 
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
MORE COLUMNISTS
 
 
Taxing informal sector counterproductive
24/04/2014 00:00:00
by The Source
 
Tax would kill informal sector ... Indian ambassador Jeitendra Tripathi
 
RELATED STORIES
Cash crunch: Taxman pounces on vendors
Footballers squeal as taxman strikes
Zimra killing local industry, Zanu PF MP
Zimra questions import duty exemptions
Zimra hunts banks foreign cash piles
Zimra boss urges raw minerals tax
MDC-T’s excitable Chikwinya warned
Zimra denies boss earns $310,000
ZIMRA missed 2013 tax collection target

ZIMBABWE should extend technical support to its informal sector and not tax it to shore up its bare coffers as this will effectively destroy it, Indian ambassador Jeitendra Tripathi said on Wednesday.

India has one of the largest informal sectors in the world, making up half the economy and accounting for 90 percent of the country’s workforce. The country has, over the past three decades, been working to formalise the sector.

The Zimbabwe Revenue Authority (Zimra) is considering taxing Zimbabwe’s informal sector, which is estimated to constitute 85 percent of the economy, employing 60 percent of the country’s adult population, as the government desperately seeks to enhance its revenue.

Zimbabwe is battling a worsening cash crunch and relies almost entirely on tax collections, due to limited access to donor funds and external loans after falling out with the West over perceived rights abuses by President Robert Mugabe and Harare’s inability to service its debt to multilateral lenders.

But Tripathi, whose country’s economy is among those anchored by informal small to medium-scale enterprises (SMEs), said introducing taxes on small businesses would destroy their viability.

“It’s like killing the goose before it lays the eggs,” he told a business conference at the Zimbabwe International Trade Fair.

India has the second largest number of SMES in the world behind China.  Instead of taxing them, government must sponsor their activities to boost production, Tripathi said.

“Almost 90 percent of research to improve small business is taken care of by government (in India) and this is what you must do.”

His country is working with Zimbabwe to promote the sector, adding that the partnership will soon set up an incubation centre to offer local SMES support in the form of machinery.



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker