BVTA Press Statement in response to the government presumptive tax on informal traders
27 November, 2020 As Bulawayo Vendors and Traders Association (BVTA) we are dismayed by the government’s proposal on the seemingly punitive presumptive monthly tax of a Zimbabwe dollar equivalent to USD$30, on micro and small enterprises and informal operators. In August, the government disbursed 600 RTGS as a COVID-19 cushioning allowance to vendors and informal traders, although this is a welcome move and not all of them received this fund, the cushioning fell short on ensuring that vendors and informal traders are insulated, some have failed to even restock with the money. Now the government wants the same vendors and informal traders to pay $30 USD or equivalent. We feel this amount is an attack to the economic rights of traders for them to be able to eke a living. People are failing to make sales now and there is reduced business due to the impact of COVID-19. An ordinary vendor cannot generate or make $30 USD, otherwise, instead of working to earn a living and fend for their families, informal traders will be working to pay the government tax and left to die. We implore the government to sincerely consider the plight of informal economy workers, a predatory state will leave families broken and children of informal workers in the streets. It cannot be over emphasised that COVID-19 has narrowed income levels for the informal workers and it continues to wreak havoc as the cost of complaint rests on their shoulders, so to propose such an amount is being insensitive from the part of the government. For vendors to be able to adhere to World Health Organisation (WHO) and Ministry of Health and Child Care (MOHCC) COVID-19 protocols, they must make monetary contributions to purchase sanitisers, masks and hand washing water dispensers, they need to contribute money towards the cost of compliance on COVID-19 guidelines, then the government adds $30 on top of the burden already on their shoulders. For Informal Cross Border Traders, they have to be going out of the country to either buy commodities or sell locally made products, they have to cough over $60 USD for the COVID-19 PCR certificate and the government proposes to add the $30 USD on top. The government must be feel for desperate women who are now bread winners in light of economic challenges We strongly feel the government’s proposal is unjustified and will increase prospects of corruption. We implore the government to be lenient and sensitive to the informal sector which is already suffering from the burns of the COVID-19 pandemic. As an Association, we strongly reject the proposed fee. We are encouraging the government to engage the sector so that we come up with a mutual beneficiary amount or arrangement. We also call upon the government to explain the payment of the $30 USD tax for clarity. Contact details: Fourth floor, Suite 406, Fidelity Life Building Fife street and 11th Avenue Email:bulawayovendors@gmail.com Facebook: Bulawayo Vendors Trust/ Bulawayo Vendors and Traders Association Twitter: @bvtatrust Website: www.bvtatrust.org Phone: +263 713 635 908
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