The country’s revenue collections are expected to increase by ten percent after the completion of a registration exercise for small and medium enterprises (SMEs) for value added tax (vat) by end of next month.
Information released by the Zimbabwe Revenue Authority (ZIMRA) to the ZBC News show that 8 944 SMEs have registered for the vat ahead of the expiry of a deadline by June 30 this year.
The authority says the inclusion of the SME’s is expected to increase revenue inflows to Treasury by ten percent, a move a tax expert, Mr Marvellous Tapera says will be critical in broadening incomes for the government.
“It is coming at the right time and we anticipate more in the short to long run as we seek to enhance revenues in the economy,” said Mr Tapera.
Finance and Economic Development Minister, Cde Patrick Chinamasa announced in the 2017 national budget that Treasury is interested in embracing the SMEs into the formal tax payment systems as part of efforts to improve revenue collections.
The SMEs whose taxable income is above US$60 000 per year have been given up to the end of June this year to come and register for vat voluntarily and make voluntary declaration of their incomes.