THE Confederation of Zimbabwe Retailers (CZR) has said authorities should help downtown tuckshops to formalise their operations through a favourable regulatory regime.
Industry and Commerce minister Sithembiso Nyoni early this week accused informal retailers who exclusively transact in the United States dollar of creating a shadow economy at the expense of the public which earns in local currency.
On Monday, the minister toured wholesalers and tuckshops in downtown Harare and appeared surprised that all prices were pegged in the greenback.
CZR president Denford Mutashu said they were “alarmed” and “concerned” by allegations peddled against its membership, urging government departments to help the sub-sector to formalise and “stop mourning about their existence”.
“CZR wishes to state that the tuckshops are not a scapegoat for policy missteps and their emergence should be celebrated as individual owners sacrificed to start up without any technical or financial support,” Mutashu said, adding that discrediting tuckshops is not an achievement but a threat to their survival.
He said a compliance and formalisation process was already in motion but raised concerns on the “costly regulatory and statutory processes associated with it”.
Mutashu said the government’s empowerment policy saw many taking up opportunities to start up retail and wholesale shops.
Some were vendors while others were refugees staying in camps and once the opportunity arose, they gathered their resources and invested the little savings in the sector, he said.
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“CZR is concerned by some seemingly xenophobic narratives being peddled on social media against fellow African brothers and sisters who sought a haven in the country and unless they are illegal and or have abused the opportunity, it is grossly unfair to paint them with the same brush.”
Mutashu said attacking tuckshops without addressing the drivers of high informalisation would be a disservice to the economy.
“It is in this context that small players have appealed to the government for a more favourable taxation environment and afford them a presumptive tax model which they can easily comply with,” he said.
“Big formal businesses are grappling with high taxation, IMTT [intermediated money transfer tax], steep licensing fees, policy inconsistencies and to some extent internal management deficiencies, hence a sober approach to resolving issues is required.”
