Zimbabwe laws stifle informal sector, says Zimra

via Zim laws stifle informal sector, says Zimra – DailyNews Live by Ndakaziva Majaka  15 APRIL 2014

Zimbabwean laws are stifling the informal sector, Zimbabwe Revenue Authority boss Gershem Pasi said yesterday.

Speaking at the National Business Council of Zimbabwe (NBCZ) symposium in the capital, Pasi said Zimbabwe’s laws were single-handedly destroying a “promising informal sector”

“We may be preaching empowerment, yet the regulatory framework is killing the informal sector,” he said.

“Tell me why a vendor should pay for a licence from the Local Government before they have started trading?”

Despite Patrick Chinamasa, the Finance minister, admitting that the informal sector was now the dominant force in the national economy, trading laws remained hostile.

Pasi said the national tax collector was in the process of making the trading environment conducive for informal traders, so that they may contribute more to the country’s GDP (gross domestic product).

“We have got a committee working with the Local Government (ministry) and they are looking at areas with decent potential for informal traders,” he said.

“We don’t just want to harvest what the informal traders are making, however we want to be there from the beginning.”

He said the current situation does not make it attractive for informal traders to conduct business as municipal police were always disturbing the informal sector’s various areas of trade.

“Government should protect the informal sector through decent areas of trade and operating systems,” Pasi said.

“As Zimra, we will provide these things for the informal sector because we believe they hold the keys to the country’s future.”



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    As Zimra, we will provide these things for the informal sector because we believe they hold the keys to the country’s future.

    What planet does this guy live on? The informal sector pays no tax???

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      Kusvikazvanaka 8 years ago

      Zimra will allow truck loads of goods into the country for free since these trucks belong to the “UNTOUCHABLES” but the same ZIMRA will search a informal trader brings into the country ….what a laughing matter!!

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    John Thomas 8 years ago

    He wants to set them up so that he can tax them

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      Zombi 8 years ago

      Very correct John. Which means they must register before they start operating, and they must cover the administrative costs of such registrations. The issue is not the regustration Mr Pasi, but as with the rest of our taxes and toll fees… What is that money used for?

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    It will never happen, the informal sector will need to have invoicing, proper shops, accounting, etc. It is called the informal sector because it is just that. This is another scheme like fixed pricing in the past. Another off the cuff pipedream.

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    Mr Pasi, Zim laws stifle ALL business in Zimbabwe. Get it! Why do you think hundreds of businesses file to get taken off the operating register. They can’t function in this economic climate with NSSA,VAT, PAYE, NEC etc, etc all extorting huge amounts and levying ridiculous fines and threats from a struggling business and struggling employees and so, Mr Pasi, do you know what they do. They shut down their official operation and go from operating ‘above’ the table to operating ‘below’ the table. Do you get that? Have I made myself clear. People like you and your ilk in ZPF make it very difficult for business to operate. Can any of you understand that or is it too difficult? You have all destroyed the goose that lays the golden egg. I call that stupid! There are simple common sense business practice you could put into place to encourage business but none of you can see it. I call that blind! There are many wise voices trying to tell you all but you cannot or will not hear. I call that deaf! Wake up!

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    munzwa 8 years ago

    Just where is this guy coming from?, why should a vendor pay for a licence to sit outside a formal shop, who does pay a licence fee,and sell the same product!!My God and to top it all off this idiot pays himself an obscene salary…

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    Roving Ambassador 8 years ago

    The pressure is on. There is no money in the kitty. Pasi is under pressure to prove his relevance. The more they come out and make these briefs , the more of idiots they expose themselves.
    We heard Cuthbert turning ZIFA into a farming enterprise.

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      Exactly! They are falling into the pit they have dug for themselves just as the bible tells it. No repentance! No Restoration. And those poor vendors are at least trying to make a living and they are desperate. I suggest Mr Pasi shares his salary with those he is milking. I presume this government and all their parastatals are getting the drift that they not very popular with the general public and so how they got those votes remains a rigged mystery. God is judging. Be afraid!

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    biggy 8 years ago

    Thank you for realising this fact but it may be too late.
    What about the way the police are desturbing the commuters by road blocking everywhere.

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    All just a smoke screen.As they should be hitting the looters and corrupt ones ,but they are not because they are the guilty ones.