Kiyapili Sibanda, Business Reporter
THE Zimbabwe Revenue Authority (Zimra) has urged small to medium enterprises (SMEs) to formalise their businesses and pay tax as this provides the necessary funding for the country’s development.
Speaking at a technology workshop held in Bulawayo on Wednesday, Zimra’s client care service officer, Mr Bothwell Muguto, said SMEs have an obligation to pay tax as required by the law.
“As long as one is in business it’s required to register and pay tax. This helps to ease pressure that is associated with managing (national) cashflows and helps the SMEs to get loans from, say Sedco, he said.
Mr Muguto said both small and established businesses should cooperate with the authorities in submitting required tax information and complying with tax regulations.
“Every registered employer is required to submit returns of all people employed detailing the salaries, wages, allowances, benefits and pension deductions,” he said.
Speaking at the same event, founder of Techfest Mr Takunda Chingozoh said it was important for young entrepreneurs to formalise their businesses.
“Zimra has made it easy for young people to understand ways of doing business and open their eyes to see the right way of registering their businesses.
“They now understand all the formalities wanted and it’s good they heard from them (Zimra) rather than relying on hearsay,” he said.