HARARE
–
Zimbabwean
businesses,
including
Micro,
Small,
and
Medium
Enterprises
(MSMEs)
are
now
required
to
adopt
electronic
payments
as
part
of
government
measures
to
address
challenges
in
the
formal
business
environment,
Information
Minister
Jenfan
Muswere
announced
Tuesday.
The
mandatory
use
of
electronic
money
is
among
several
short-term
interventions
approved
by
cabinet
to
increase
tax
compliance,
formalise
informal
sector
operations,
and
enhance
economic
stability.
Under
these
reforms,
vendors
must
register
with
local
authorities,
open
bank
accounts,
and
acquire
Point
of
Sale
(POS)
machines.
Muswere
said
the
measures,
presented
by
Finance
Minister
Mthuli
Ncube,
aim
to
ensure
“every
eligible
taxpayer
pays
tax”
through
a
compulsory
payment
system,
enforced
by
a
“Domestic
Inter-agency
Team”
tasked
with
ensuring
informal
sector
compliance
with
tax
laws.
The
government
also
endorsed
refinements
to
the
foreign
exchange
system,
including
reducing
the
foreign
currency
retention
rate
for
exporters
from
75
percent
to
70
percent
and
lowering
bank
charges
and
minimum
deposit
interest
rates.
Medium-term
interventions
include
streamlining
regulatory
processes,
improving
electricity
supply
through
power
plant
construction,
enforcing
local
procurement
policies,
and
incentivizing
alternative
energy
use.
To
further
support
MSMEs,
the
government
pledged
to
create
designated
workspaces,
simplify
taxes,
strengthen
business
development,
and
ban
the
importation
of
second-hand
goods.
“These
measures
will
provide
the
necessary
support
for
MSMEs
to
transition
into
formal
businesses,
addressing
long-standing
challenges
in
the
economy
and
fostering
sustainable
growth,”
Muswere
said.