Govt has not choice but depend on informal sector for taxes, says Nonde-Simukoko

LABOUR minister Joyce Nonde Simukoko says the formal sector is shrinking and that the government has no choice but to depend on the informal sector, even in terms of mobilising taxes.

Officiating the launch of an analysis of the informal economy in Zambia at Protea Tower Hotel in Lusaka yesterday, Nonde-Simukoko said there was need to find ways of extending social security to workers in the informal economy.

The minister noted that despite the complexity of the informal economy, the government, through the Ministry of Labour, in collaboration with other stakeholders, was pursuing a number of measures to ensure that social security was provided to informal economy workers.

“Social security is key. So, colleagues in the informal sector, let’s start discussing. Yes, there could be certain issues that are very pertinent that our people in the informal economy may want clarity on. Let’s start opening up to suggestions,” Nonde-Simukoko said.

“I’m also appealing to the informal sector that this will make them to become organised and we all know the advantage of organised groups. We all know that the formal sector is shrinking and we are going to depend on the informal sector, even in terms of mobilising taxes. We have no choice! We have to do that.”

She added that the informal sector further presented a diversified set of economic activities, enterprise and jobs that posed a great challenge for government to regulate and protect.

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