A number of Bulawayo-based traders endured a torrid during the festive season after the Zimbabwe Revenue Authority (Zimra) and security agencies launched raids on businesses suspected of selling smuggled goods.
Liquor traders, tuckshops and shops that sell second hand clothes were the major targets as the tax collector confiscated goods from those that could not provide proof that they paid duty for imported products.
Haddon&Sly, which houses several small shops, was closed for a couple of days during the Christmas period after Zimra descended on the complex.
Some of the traders had to pay hefty fines and lost their goods after failing to prove that they were not smuggled into the country.
There were also raids at the Amaya Mall in the central business district.
Percy Mcijo, director of Bulawayo Streetwise Traders Association, said the raids by Zimra were too harsh for people that were trying to eke out a living in a tough economic environment.
Mcijo said apart from trying to curb smuggling, Zimra was trying to enforce measures to ensure that informal traders paid taxes.
The government last year introduced presumptive tax, a fixed-rate levied on informal businesses that do not maintain proper financial records when transacting.
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Some of the targeted businesses included hair salons, bottle stores and public transporters, among others.
Mcijo said informal businesses must have been given more time to comply with the new measures.
“I think the government should have been patient with the traders, especially vendors when it comes to the new tax measures,” he told Southern Eye on Sunday.
“They should be given time to understand the Zimra requirements because this is a new thing and people need assistance to understand it.
“They were too harsh in taking such an action (to raid businesses).
Michaell Ndiweni, the Bulawayo Vendors and Traders Association executive director, said there was need for wider consultations before Zimra can come hard on traders.
Ndiweni said the informal businesses must strive to be compliant to avoid having their goods seized by the tax authorities.
Bulawayo, Matabeleland North and Matabeleland South Micro, Small and Medium Enterprises Advisory Council member Dumisani Ncube said the raids by Zimra were prompted by complaints by established businesses that they were being choked by informal businesses that do not pay taxes.
Ncube said Zimra would come hard on traders selling second hand clothes as the practice was illegal in Zimbabwe. Zimbabwe banned the selling of second hand clothes years ago, but the practice is still rampant due to smuggling.
“For the over 80 people running their businesses at Haddon& Sly premises, the government is not fighting them, but needs compliance on tax payments,” he said.
“Zimra had no option, but to close their businesses temporarily so that they can produce proof of duty payments for those items.”
Ncube said seized second clothes would be destroyed.
