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Mr Denford Mutashu

Kiyapili Sibanda, Business Reporter
THE Confederation of Zimbabwe Retailers (CZR) is engaging the Government seeking the scrapping of the five percent Point of Sale (POS) tax so as to promote use of plastic money in the country.

In an interview CZR president Mr Denford Mutashu stressed the need to reduce the cost of POS transactions.

He suggested that scrapping the five percent tax on POS could go a long way in encouraging use of plastic money by both businesses and consumers.

“It has been our clarion call to the regulator, the Reserve Bank of Zimbabwe (RBZ) and the Ministry of Finance and Economic Development to reduce the cost of POS transacting and we appeal for the scrapping of five percent tax on POS transactions,” said Mr Mutashu.

He told Business Chronicle that electronic transactions such as swiping, online and mobile payments should be made more attractive than cash through reduced costs.

“We need more pull factors towards plastic and mobile money. Even telecommunications companies should come to the party because mobile money charges are too high and at times it is just that the public has no better alternative,” said Mr Mutashu.

He added that companies should not short-change customers by demanding cash always but to come up with different services that enable customers to buy without using cash.

Mr Mutashu also said there was a need to improve the supply side and make industry produce competitively before advocating for the adoption of the South African Rand.

“One of the biggest challenges in this economy has faced is production. We need to improve the supply side of business and make industry produce competitively. Advocating for adoption of the Rand is stretching the imagination too far and what is required is to ensure the conditions that promote externalisation, cash hoarding and market indiscipline are dealt with before looking at the currency reforms,” he said.

Mr Mutashu said the way forward is to boost production adding that in the long term the country needs a currency that cannot be externalised and the economy should start creating conditions that promote plastic money and mobile money usage.

Last month, the Minister of Finance and Economic Development Patrick Chinamasa stressed the need to make plastic money more attractive.  He also threatened to cancel operating licences for retailers and wholesalers that do not bank cash from sales.

The country has to date sourced 33 000 point of sale machines to help ease the cash challenges prevailing in the economy.

Meanwhile, mobile telecommunications operator Telecel Zimbabwe says it has recorded an improvement in its Telecash facility after introducing the gold card for swiping. Econet’s EcoCash also has a debit card. The debit card is convenient in making payments in the same way any bank debit card works at any point of sale with a ZimSwitch logo or to withdraw cash from any ZimSwitch branded ATM.

— @Kiyaz_Cool.