Bank-shy businesses to lose licences: Minister

Source: Bank-shy businesses to lose licences: Minister | The Herald April 7, 2017

Zvamaida Murwira Senior Reporter—
Government will withdraw trading licences for businesses that will be convicted of failing to deposit their daily sales with financial institutions, a Cabinet Minister told Parliament yesterday. Finance and Economic Development Minister Patrick Chinamasa said they were crafting a legal instrument that would empower Government to withdraw licences for traders who fail to comply with Bank Use and Promotion Act.

Minister Chinamasa said the failure to bank was one of the causes of the current cash shortages.
He said there would be no sacred cows.

Minister Chinamasa said this while responding to questions from legislators to his ministerial statement on the cash situation.
“We will not hesitate to pass that law,” he said. “I must give a strong warning that licences will be withdrawn. We will take stern measures to bring these saboteurs to book.

“Where legislation is in place, we will enforce it, but where there are gaps, we will plug them with the necessary law.”

Minister Chinamasa said they will monitor big businesses such as Mahomed Mussa, Ok Bazaars, TM Pick n Pay and Choppies to observe their cash deposit trends.

“Money is like blood, it needs to circulate for the economy to survive,” he said. “Money should circulate to deal with queues at banks.”
Minister Chinamasa said three traders had since been arraigned before the magistrates court and all had pleaded guilty.

Commenting on the recent decision by the Zimbabwe Revenue Authority to impose a 10 percent tax on tobacco farmers, Minister Chinamasa said that was within the law.
He said one should produce a tax clearance certificate for any income from whatever quarter.

“If you are selling goods, say to TM, that business should withhold 10 percent of your earning pending production of tax clearance certificate,” he said. “Once you produce it, you will be given your money.”

Government has since suspended the imposition of the 10 percent tax after an outcry from farmers and stakeholders.
Meanwhile, the Constitutional Amendment Bill (Number One) which seeks to amend the Constitution was tabled before the National Assembly for the first time yesterday.

Minister Chinamasa tabled the Bill on behalf of Vice President Emmerson Mnangagwa, who oversees the Ministry of Justice, Legal and Parliamentary Affairs.

The Bill empowers the President to appoint Chief Justice, his Deputy and High Court judge President, instead of restricting his appointment from a list submitted to him by the Judicial Service Commission.