Africa-Press – Zimbabwe. GOVERNMENT is mulling a legal framework compelling informal traders to use point-of-sale (POS) machines as part of efforts to formalise the informal sector and improve tax revenue collection.
The legal framework to mandate POS usage is expected to be tabled in Parliament later this year as part of broader strategies to formalise the informal economy and strengthen the national revenue base.
According to the Industry and Commerce ministry, the move, aligned with the Finance Act, seeks to curb leakages in value-added tax by ensuring that cash-based transactions in the informal market are properly recorded and taxed.
Economist Persistence Gwanyanya said the adoption of POS machines in the informal sector was critical for enhancing transparency and boosting government revenue.
“The informal sector contributes significantly to our economy but remains largely untaxed due to the prevalence of cash transactions. Introducing a legal requirement for POS use will help to close this gap,” he said.
“This will not only improve tax compliance, but also promote accountability among traders, enabling the government to mobilise more revenue for essential services.”
Gwanyanya said the benefits extended beyond tax collection.
“POS systems also reduce the risks associated with handling cash, such as theft and fraud and provide informal traders with a digital record of their transactions,” he said.
“This can facilitate access to financial services like loans and insurance.”
The Confederation of Zimbabwe Retailers has indicated that some sections of retail sector, such as grocery shops and tuckshops, have already adopted the use of POS machines.
However, challenges remain.
Some informal traders have expressed concern over the affordability of POS devices and the technical knowledge required to operate them.
“The government must ensure that any enforcement measures are accompanied by education and support programmes to help traders to adapt,” Gwanyanya said.
The Industry and Commerce ministry has pledged to engage stakeholders, including trader associations and financial institutions, to address these concerns ahead of the rollout of the proposed regulations.
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