Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya, has suggested that Zimbabwe should introduce a flat tax for traders in the informal sector in an effort to increase the country’ tax base and as well as to increase the country’s GDP.
Speaking at the launch of the Confederation of Zimbabwe Industries (CZI) Manufacturing Sector Survey 2016 report, Mangudya said:
If the Zimbabwean economy is 70 percent or 80 percent dominated by the informal sector, it means we need a tax that talks to the informal sector.
Maybe we now need a flat tax for everyone who is in business in terms of the informal sector. Maybe $10 or $20 per month.
Our GDP might not be as low as the ZimStats figures indicate today. I do believe that Zimbabwe’s GDP is higher than that, because if you have 70 percent of economic players (the SMEs) not paying tax and 30 percent are paying taxation and they are bringing about $4 billion.
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