AS the government pushes to boost state revenue through increased taxation, small to medium enterprises (SMEs) have criticised the reduction of the value-added tax (VAT) threshold, warning it undermines compliance efforts and could stifle their growth.Through recent legislative changes, the government has intensified efforts to formalise businesses and bring them into the tax net. However,…
VAT thresholds ‘constrain’ SME formalisation
In 2024, the Zimbabwe Revenue Authority (ZIMRA) slashed the VAT threshold from US$240 000 to US$25 000 annually, a ten-fold reduction.