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THIS IS A KEY POINT WHICH BUSINESS HAS NOT BEEN ADDRESSING!!!!!!
19,262 views • 2 months ago •via X (Twitter)
22 Comments

It would be misleading to focus solely on profit margins without considering the broader operating environment. Input costs in Zim remain significantly higher than those in the region, driven by elevated energy costs, compliance requirements, a range of taxes & statutory levies.

He is talking about VAT!!!! Do you know how VAT is calculated?????

He must collect that high volume of VAT, pay civil servants more, stimulate demand and we are good to go.

Why prices are high: 2% Mthuli tax 3% Bank charges Mthuli tax is not tax deductible. It's taxed as income Zbc-CCTV tax,radio tax AMA tax NBA tax Nssa Zinwa ZERA REA on electrity Forestry tax Licensing POTRAZ Airtime tax Fuel tax Reregistration tax Zanu PF protection ZRP VID ZNA

Discussing VAT in isolation would not make sense without looking at the overall effect of so many taxes on the same taxpayer. Gvt needs consolidate it's needs and make collections from as few points as possible yet covering as wide a net as possible.

This is not a sober and rather dishonest observation, while it’s true that our prices are higher and hence Gvt collects high value VAt, it’s dishonest that it’s caused by business margins ! The problem is gvt’s ease of doing business thrushes the prices and businesses only pas the costs to the consumers . Simple example fuel costs in Zimbabwe Gvt takes more than 40cents per dollar on taxation, Zimra charges 60% plus on some imports, telecoms sector is charged 48cents per dollar..the list is long … How does business charge competitively across region when their Gvt is already taxing em an arm and leg.. @GGuvamatanga must address the elephant in the room… Gvt multiple taxes

@Jamwanda2 read comments or perish. It's sickening to note that you've been in this same government for 20+ years and all you can sell better is propaganda to save ZANU PF, this shit must stop!.

If government paid suppliers consistently and on time, margins would go down. Government is the biggest driver of Aggregate demand

Something shifted since the time of hyper inflation. Businesses got too used to having upper hand against the consumer when supplying products which were scarce. They don't want a normal environment to prevail

@Jamwanda2 on slight different bt equally important issue can you kindly look into sugarcane production we are paying taxes and levies to. Zimra, minstry of lands, rural council, sdl, nssa, nec, zinwa, zesa, subcatchment council, milling charge, association. All these on one crop

On VAT % he's correct, he blames business on high profit margins & doesn't address that. Govt is the chief culprit its Tenders are over priced. If govt would allow SA companies to bid for its projects it will get value for money at the lowest cost. Business will reduce margins

What’s the time line for informal sector tax holiday ? Before we go to the motion of taxing them.. ..?

Profiteering

No legit business person seriously complains about VAT. What we dont want are the exorbitant banking charges and transaction charges. There this new digital payments tax that businesses will now have to pay when purchasing goods from abroad as well!

Spot on

Businesses are not after GP, They are after PAIT. VAT is one component and cannot be addressed alone

Where can I find the full video

#Profiteering . Apa some of the products being over priced would have been smuggled from South Africa!!!

VAT alone doesn't add up because there some many taxes which will put the price up

Yeah Zimbabwean businesses are used to get rich quick schemes, prices are abnormally high as a result affecting the consumer

Vat is 15% however our products are expensive as a result of cost of production

not all these countries have IMTT



