Published: 04 June 2018

The Zimbabwe Revenue Authority (Zimra) plans to cut taxes for small to medium enterprises (SMEs) as part of efforts to help them formalise their operations through compliance.

A working paper titled “Shadow economies around the world: What did we learn over the last 20 years?” - published by the International Monetary Fund (IMF) on January 24 this year - claims that Zimbabwe's informal sector, at 60 percent of the economy, is the second-largest in the world after Bolivia.

Similarly, a Finscope study published in 2012 estimated that the country's informal economy could be worth more than $7 billion. However, informalisation comes at a cost as most of the enterprises are not contributing to the fiscus.

Zimra says although it has 300 000 companies in its books, the figure could be higher if SMEs play ball.
- The Sunday Mail

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