Simplified SMEs Tax regime to spur economic growth

By Varaidzo Zhakata
THE Government of Zimbabwe (GoZ) has expressed commitment to establish a favourable working environment for Small and Medium Enterprises, by introducing a simplified Tax regime.
Addressing journalists at the weekly post Cabinet briefing session, information, publicity and broadcasting services minister, Monica Mutsvangwa highlighted that government had noted potential the presented through SMEs, with the potential capacity to aid development, and growth of the economy.
The regulatory measure also aims at incorporating previously disadvantaged groups, such as women and the youth.
“SMEs have the potential of becoming an anchor to growth and development of the economy, through their contribution to employment creation, poverty alleviation, economic empowerment, and participation of previously disadvantaged groups, such as women and the youth,” read the presentation.
This move comes after the government rolled out a newly reviewed policy and strategy aimed at providing a framework for the effective implementation and coordination of policies, legislation and programmes pertaining to Micro, Small and Medium Enterprises (MSMEs).
The National policy will work as a catalyst to speed up formalization of the informal sector.
The policy which focuses on entrepreneurship development, business management, corporate governance and technical skills development, access to modern production and information communication technologies (ICT), and rural industrialization will allow SMEs to be equipped with modern ideas and facilities that will enable them to operate and be productive in tandem with the global community.
The policy which looks more like an address to the challenges facing Micro, Small and Medium Enterprises (MSMEs) to boost their involvement in the economy, since it was noted that gaps remain in financial areas, largely due to high-interest rates, and collateral required by financial institutions, access to workspaces, such as factory shells and restricted collaborations with academic research institutions.
Other pillars the policy will be anchored on the legal and regulatory environment; MSMEs financial support; market development and trade promotion; cluster development; standardisation and quality assurance; investment promotion; research and development.

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