Staff Reporter
The Ministry of Finance, Economic Development, and Investment Promotion’s introduction of a retailer taxation policy has garnered widespread applause from economic analysts.
In different statements, renowned experts have commended the initiative, highlighting its potential to foster a more competitive market and contribute significantly to economic growth.
Terrence Chapwanya, a renowned economist, expressed support for the policy.
“Imposing conditions on retailers, such as the requirement for a valid Tax Clearance Certificate and VAT registration, is a crucial step towards creating a transparent and accountable business environment. This not only ensures fair competition but also strengthens the taxation system.”
Furthermore, Chapwanya viewed the emphasis on retailers purchasing directly from manufacturers, contingent upon meeting specified criteria, as a catalyst for market dynamism.
“By streamlining the procurement process through these conditions, we anticipate a more level playing field for businesses. This will prevent tax evasion and promote a healthier, more competitive market environment.” Chapwanya noted
Moreso, manufacturers also stand to benefit economically from this taxation shift, as pointed out by Mary Samanga, an expert in industrial economics. Samanga explains, “Empowering manufacturers to sell directly to institutional clients expands their market reach. This diversification can stimulate growth in the production sector, ultimately contributing to broader economic development.”
Addressing concerns related to consumer safety and product quality, the requirement for manufacturers to distribute perishable products directly to retailers has garnered support from economists like Martin Zuze.
“This aspect of the policy ensures a more streamlined and efficient supply chain, reducing the risk of substandard or unsafe products entering the market. Enhanced consumer confidence is a positive externality of this regulatory measure,” said Zuze.
In addition, Zuze also highlighted that from a macroeconomic perspective, the introduction of retailer taxation will bolster Government revenue, “Tightening tax regulations and broadening the tax base through retailer compliance is a strategic move. The anticipated increase in revenue can be directed towards essential public services, infrastructure development, and social welfare programs.” Zuze added
The Ministry’s decision to implement retailer taxation, backed by the support of eminent economists, is poised to bring about positive changes in the economic landscape. The anticipated benefits, ranging from fostering fair competition to stimulating economic growth, underscore the significance of this policy shift.
