Abstract: The purpose of the study was to encourage the government to formalise the informal sector so that it could increase revenue inflows from taxation. The researchers sought to establish how informal traders justified non-payment of presumptive tax to government and why they felt they should not pay tax to the government. The qualitative paradigm was used to obtain the perceptions, experiences and thoughts of small and medium traders on the issue of presumptive tax. Small and medium business operators from the city of Harare formed the population. In-depth interviews and focus group discussions were used to gather data. The data was tabulated and analysed; and then grouped into themes. The researchers discovered that all the sampled small and medium business operators had never paid presumptive tax to the government because they claimed that the government abused tax money, the state did not plough back any of the collected taxes into the informal sector; and the informal sector did not generate enough money to pay taxes. The researchers recommended further research to establish the exact figures of money lost by government through non-payment of presumptive tax.
Keywords: informal traders, informal sector, medium business operators, taxation.
Title: Government Inducing Negligible Presumptive Tax Inflows from Informal Sector: Reasons and Perceptions of Informal Sector Players
Author: Dr. Caxton Shonhiwa, Stanley Idanai Murangwa
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
Research Publish Journals
