HARARE, Jan 31 (NewsDay Live) - Government has introduced stringent measures to protect the formal sector from unfair competition posed by the informal sector.
In a statement released Friday following an emergency meeting with captains of industry, Finance minister Mthuli Ncube said the move aims to level the playing field between formal and informal businesses.
One of the measures include discouraging manufacturers from doing business with informal traders.
Government, which last year introduced another wave of measures, has consistently blamed the informal sector for the challenges which now threaten the existence of traditional retail and wholesale chain stores.
“Government is, therefore, proposing additional measures to promote formalisation and tax compliance by the informal sector, as follows: Mandatory use of point-of-sale machines by all informal traders; adoption of international best practise on tax payment, which ensures every eligible taxpayer complies, level the playing field between formal and informal businesses by discouraging manufacturers from supplying directly to end users and the informal market,” Ncube’s statement read in part.
He said there was need for the establishment of a domestic inter-agency enforcement team to enforce compliance in the informal sector.
The Finance minister added that there is also need to enforce collaboration between local authorities and the central government in the licensing and enforcement processes.
“Furthermore, the Reserve Bank of Zimbabwe will announce additional measures through the Monetary Policy Statement to enhance the formalisation of the market,” the statement further read.
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"Government will] put additional incentives to support the industry through the Industrialisation Fund in addition to the already existing incentives.
"Government will] embark on an exercise to streamline regulatory processes, fees and charges, as well as duplication of work by government agencies, in order to reduce the cost of doing business enforcement of the provisions of the Indigenisation and Economic Empowerment Act which provides for reserved sectors.”
It added: "Government will put. . . provision of additional incentives to support Industry through the Industrialisation Fund over and above the already existing incentives such as duty-free imports Special Economic Zones incentives and promotion of the procurement of goods and services from local producers and suppliers by government, to support local industry.
