ZIMRA To Close Down Tuckshops And Lodges Not Registered For Tax Purposes
Siyabonga Mpini by Siyabonga Mpini November 29, 2024
ZIMRA Tuckshops Tax
ZIMRA To Close Down Tuckshops And Lodges Not Registered For Tax Purposes [Image: X]
The Zimbabwe Revenue Authority (ZIMRA) will close down all tuckshops, parts dealers, lodges, and small businesses not registered for tax purposes.
This was revealed by Finance, Economic Development and Investment Promotion Minister Prof Mthuli Ncube during the 2025 National Budget Presentation at the New Parliament Building in Mt Hampden.
Tuckshops And Lodges To Contribute To The Discuss
Prof Ncube announced a ZiG276,4 billion budget yesterday and announced new revenue-enhancing measures. The finance minister called for mandatory ZIMRA registration of informal businesses and operators.
These include clothing merchandisers and boutiques, automobile and spare parts dealers, grocery and kitchenware merchandisers, car dealers, hardware shops, lodges, and other accommodation providers.
Prof Ncube said several operators are engaged in significant economic activities and, hence, qualify to contribute to the national revenue through Personal and Corporate Income Taxes, as opposed to Presumptive Tax.
He proposed that the small enterprises be mandated to regularise registration of their operations with ZIMRA, transact through Point-of-Sale Machines and maintain records of all transactions by 1 January 2025.
Minister Mthuli Ncube said companies which fail to register with ZIMRA for tax purposes will be forced to pay taxes as follows:
Spare Parts Dealers – US$9,000
Car Dealers – US$15,000
Grocery and Kitchenware Merchandisers – US$9,000
ZIMRA will also temporarily shut down the small enterprises which fail to register with them or pay the above taxes. The closures will only be lifted when the businesses register with the tax authority and pay all their tax obligations.
New Tax Obligations Introduced By Minister Mthuli Ncube
Besides making it mandatory for small enterprises like tuckshops and lodges to register and pay taxes, Prof Ncube introduced new taxes to expand Zimbabwe’s revenue base.
He proposed introducing a 10% Withholding Tax on the gross winnings of Sports Betting Punters, effective 1 January 2025. Betting companies will be withholding the tax on behalf of the government.
ALSO READ: Mthuli Ncube Introduces Fast Food Tax, Says Zimbabweans Need To Eat Healthier
Additionally, the government introduced a 0.5% fast food tax on the value of some food items sold by Fast Food Retail Outlets and Restaurants. The taxed items are pizzas, burgers, hot dogs, shawarmas, french fries, chicken, doughnuts and tacos.
Minister Ncube also announced a Rental Income Tax targeting properties converted from residential to commercial use and a 20% Plastic Carrier Bag Tax
