Staff Reporter

Small and Medium Enterprises (SMEs) in Zimbabwe are being encouraged to embrace the recent tax reforms introduced in the Finance Act, with calls for increased awareness and education on the changes.

Speaking during the unveiling of the Finance Act to Small and Medium Enterprises event held at Cresta Jameson Hotel in Harare,  Dr. Mavis Sibanda, the Permanent Secretary for Women Affairs, Community, Small, and Medium Enterprises, highlighted the need for an educational outreach, particularly targeting SMEs operating informally.

She urged both the Zimbabwe Revenue Authority (ZIMRA) and the Ministry of Finance, Economic Development, and Investment Promotion to take proactive measures in educating SMEs.

"In order to foster a better understanding of the recent tax reforms, it is crucial for ZIMRA and the Ministry of Finance to engage in extensive educational outreach, especially for SMEs operating in the informal sector," emphasized Secretary Sibanda.

Dr Sibanda further emphasized that a significant 96 percent of SMEs in the country operate informally, underlining the importance of providing comprehensive education from grassroots levels, stressing the role of education in facilitating the transition from informal to formal business operations.

"Given that 96 percent of SMEs operate informally, there is a critical need to empower these businesses with knowledge about the advantages of formal registration," said Secretary Sibanda.

Highlighting the substantial contribution of SMEs to the nation's economy, constituting 24 percent of the GDP, Secretary Sibanda emphasized the importance of encouraging and informing these businesses about the benefits of formal registration.

"SMEs play a pivotal role in our economy, constituting 24 percent of the GDP. It is imperative that we create an environment where these businesses can thrive, and that starts with ensuring they are well-informed about the advantages of formal registration," she explained.

This call for education aligns with the vision of fostering a supportive environment for SMEs, recognizing their role as vital contributors to the nation's economic landscape. Secretary Sibanda believes that a proactive approach in disseminating information will empower SMEs to navigate the changes brought about by the Finance Act.

However, the 2024 revenue measures implore that only traders registered for Value Added Tax purposes and are in possession of valid tax clearance certificates will be eligible to procure goods from manufacturers, such a policy will improve the revenue base for the Government.