Electronic Transfers Levy Could Stop Vendors Dodging Tax – MP

AN opposition legislator has urged government to introduce another levy on electronic cash transfers saying this would help address the problem of taxing the country’s vendor economy.

MDC-T’s Bulawayo South MP Eddie Cross said this while presenting recommendations by Parliament’s Finance Committee during a debate on the 2018 budget this Tuesday.

An economic crisis that has lasted nearly two decades saw the collapse of industry and reduction of formal employment to around 10 percent, according to non-government estimates.

Most economic activity is now in the informal sector which has proved difficult to tax resulting in government revenues remaining constrained.

However, Cross said another levy on electronic money transfers which have become the dominant transacting method due to cash shortages could help government tax the nburgeoning informal sector.

“I believe that we can cover the shortfall in our revenues,” he told finance minister Patrick Chinamasa.

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