Mthuli Ncube Targets Vendors as Revenues Dry

Finance Minister Mthuli Ncube has proposed linking council licence renewals to tax compliance for vendors, a move reported by ZimEye that targets the informal sector and aims to boost revenue. The move targets the informal sector as government revenues dwindle amid a widening fiscal deficit and declining tax collections from formal businesses and a shrinking tax base, putting pressure on the state. Vendor associations have clashed with the proposal, arguing it punishes small traders for state mismanagement and poor economic policies that have driven many into the informal sector. Critics note that the informal economy already faces heavy levies without corresponding services or infrastructure support, making the new tax burden unfair. The core vulnerability is the government's reliance on squeezing an already strained informal sector rather than broadening the formal tax base or curbing elite corruption, a strategy that risks further economic contraction.