THE Zimbabwe Cross-Border Traders Association (ZCBTA) has proposed a quarterly licensing system to the government, saying this could unlock a substantial revenue stream for the country, potentially amounting to millions of dollars annually.
In a submission to the Parliamentary Portfolio Committee on Industry and Commerce, the ZCBTA outlined how this system could bolster government revenue by over US$10 million per quarter.
The proposal is part of the association’s broader recommendations on the formalisation of the informal sector.
“For the past decade, ZCBTA has been lobbying for a simplified, time-based licensing system to be implemented to register and collect revenue from cross-border traders,” the document reads in part.
“However, at each budget input session, Zimra (Zimbabwe Revenue Authority) and the Ministry of Finance have refused to accommodate these proposals, as they prefer to levy revenue using their Eurocentric systems modelled under the Companies Act, which are costly and complicated.”
It said the result was that this approach effectively marginalised those outside the mainstream.
Moreover, ZCBTA said revenue generation remained minimal due to low compliance.
“Instead, what one sees is an increase in corruption cases, post-border or inland inspections and searches, and numerous blitzes,” it said.
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“If, for example, cross-border traders were charged US$25 per quarter for a trader’s licence, which would allow them to access specific benefits, it is possible to attract around 400 000 traders to register voluntarily.
“This move alone could unlock over US$10 million per quarter, which could be distributed as proposed above or using an alternative formula.”
Zimra and the Ministry of Finance had not yet responded to questions posed by the Zimbabwe Independent by the time of going to print.
The association hailed tuckshops as a highly-efficient alternative retail distribution network, providing exceptional shopping convenience to township residents.
However, policymakers continue to overlook their significance. It said tuckshops could serve as a significant source of revenue for service delivery and devolution programmes.
“It is feasible to develop a simplified, time-based licensing system with geolocation identity, enabling the revenue to be split between the ward, local authority, and province where it was generated,” ZCBTA submitted.
