THE Vendors Initiative for Social Economic Transformation (Viset) has called on the government to engage the constituency on taxation matters rather than criminalising members.
Authorities have ramped up pressure for the informal sector to formalise operations.
The informal sector generates US$14,2 billion annually in revenue, according to the central bank.
Some of the measures employed to force the informal sector to formalise operations include arrests, revoking licences for those operating without bank accounts and chasing vendors from high-traffic areas in central business districts.
Viset’s monitoring, evaluation and learning programmes officer Edward Kapodogo said the sector was willing to pay taxes if it benefited from such compliance.
“On the issue of monetary taxation, we all know that the Minister of Finance (Mthuli Ncube) announced in January that there is now a new framework, which is monetary taxation,” he said, addressing delegates at last week’s two-day Employers Confederation of Zimbabwe 2025 Business Indaba.
“This is part of the framework in which the government is trying to mobilise resources through taxes because we know that the government depends on taxes.
“To appreciate the taxes that we are supposed to be paying, there is a need for government to engage us so we understand how we can get involved instead of criminalising the sector.”
- Vendors call for engagement over taxes
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He noted that the sector was willing to comply, noting that they needed to transition to sustainable businesses.
“The issue is, what do they get in return for compliance? So, those are some of the things that we are trying to explore so that we come up with recommendations for the sector,” Kapodogo said.
He noted that vendors needed the banks to secure capital or access finance, which was another reason why vendors needed to engage with the government.
“Secondly, we, as informal economy workers, from the taxes we pay, are advocating that the government takes a percentage of some of the funds that are going to the government so that it can be used to develop and build infrastructure for the markets,” Kapodogo said.
“Speaking of markets, the nature of markets that the informal economy workers are working for is not conducive. There are no toilets, no water, no lights.”
He said vendors with disabilities also required special facilities.
“Taxation is just one of the single elements that can be used towards formalisation,” Kapodogo said.
“We are saying that formalisation must be holistic and must involve supportive elements like access to finance, access to capital, you name it, and social security and infrastructure development.”
