Benefits of Formalizing Businesses for Entrepreneurs and the Economy

TLDR

• He explained that formalising businesses provides benefits to both entrepreneurs and the wider economy, including greater access to capital, increased investment opportunities, improved competitiveness and enhanced.
• Mwenda said revenue authorities should not rely solely on strict enforcement of tax laws to encourage businesses to enter the formal economy.
• He said the use of technology and digital systems could help reduce costs, time and administrative burdens for taxpayers, thereby encouraging more businesses to transition into the formal economy.
• The informal sector should not be viewed solely as a source of revenue, but as an important part of the economy that requires an enabling environment for businesses to grow and eventually transition into the formal.