Government ignoring the goose that puts golden egg

The appeal occurs in the middle of a bloodbath in the retail sector that has seen some retailers close stores and others stagger in the precipice.

The Zimbabwe (CZR) retailer confederation has added its voice to the struggles facing the sector, appealing to President Emmerson Mnangagwa to intervene urgently to rescue what remains of the retail sector and formal wholesale sector.

The appeal occurs in the middle of a bloodbath in the retail sector that has seen some retailers close stores and others stagger in the precipice.

According to the body’s body of the retailers and wholesalers, the recent closure of several points of sale under the N Richards group, together with the decision of Spar Zimbabwe to close the spar of Queensdale, the departure of Choppies Zimbabwe of the market and the significant reduction of Mussa de Mahommed Mussa of the store space by 60% underlines the growing crisis.

This paints a gloomy image for thousands of employees who are taxpayers.

Suppliers will feel the undulation effect.

Formal retailers have led the position to promote local products with 70% of the products on their shelves are local.

CZR said that the closure of several retail companies and formal wholesalers was a direct consequence of the prevailing turbulent economic environment that “it has not been able to support the players of the formal sector.”

The double currency regime takes much of the linen in the middle of an overvalued exchange rate that has distorted prices in the formal sector, thus promoting the search for rent.

According to the body of retailers and wholesalers, the government seems not to be doing enough to nurture the goose that puts the golden egg, pays taxes.

This occurs in the midst of greater informalization than pro -government analysts equal to empowerment.

However, the increase in informalization is complicated in an economy that has been struggling to access its pound of meat from the informal sector through taxes.

The growing sector is enjoying a free trip in an economy where formal retailers are loaded by a regulatory regime of punished with more than 30 license costs separately.

When the government claims to have an investment environment propitious in its place, it will refer to foreign investors who enjoy most of the incentives such as tax exemptions.

Local investors have been pressing for a level playing field, but their pleas have fallen into deaf ears if the last SOS of CZR is something to happen.

The Government will soon reap the fruits of neglecting the formal sector as the involuntary effects begin to bite.

Tax chiefs, such as the Value Added Tax, will have a lower yield, since many will resort to the informal sector where the cash is the king and the tax authorities do not have a mechanism of enforcing the rule of “giving Caesar what it belongs To César “.

Instead, the government has resorted to squeeze those who comply.

An administration in favor of companies must establish a conducive environment for companies to operate.

The role of the government is to establish an environment in which the business thrives.

The appeal of CZR has left unanswered questions.

What is needed for the government to address the concerns of formal retailers?

Are you so concerned about the ED2030 agenda so that you don’t have time to address retail concerns?

Is it an inability to intervene or is it pure arrogance by the government?

The latter could be true since it observes while a sector with more than 20,000 employees is returned.

The Government will soon pay the price of such obduracia when tickets into its coffers collapse.