Chronicle Editor
Government has suspended Value Added Tax (VAT) on selected basic commodities and what this means is that the prices of these commodities should be reviewed downwards by both producers and retailers.
A number of businesses reduced prices of these selected products soon after Government announced the suspension of the VAT a few weeks ago but others have been resisting.
The commodities exempt from VAT are cooking oil, maize meal, milk and bread while meat, rice, bath soap, laundry soap, washing powder, toothpaste and petroleum jelly have been moved to standard rating which means price increases should be minimal.
All businesses should therefore ensure consumers benefit from VAT exemption by reviewing the prices of the selected commodities downwards.
After the presentation of the 2024 National Budget which proposed VAT on basic commodities, business leaders and other stakeholders raised concern on the impact of VAT on prices of the basic commodities. This prompted Treasury to constitute a technical committee to receive input from representative members under the umbrella body of the Confederation of Zimbabwe Industries. Following the technical committee recommendations, Government suspended VAT on the selected basic commodities to cushion consumers against price hikes.
We want at this juncture to commend Government for being sensitive to the plight of consumers as demonstrated by its bold decision to suspend VAT on the selected basic commodities. Confederation of Zimbabwe Retailers (CZR) has in the past made a commitment to reduce prices each time the cost drivers are reduced.
This is as it should be because prices, especially of basic commodities, must remain affordable to the majority of consumers. Government and business should continue to work together to stabilise prices.
The indiscipline in the marketplace which we witnessed during the past few weeks should not be allowed to continue as it causes the suffering of ordinary consumers.
There is a need for businesses to uphold ethics and avoid profiteering through charging exorbitant prices.
Government on its part must work closely with Industry and Commerce to address the issue of major cost drivers so that locally produced products remain affordable.
Unscrupulous businesspeople whose exorbitant prices have nothing to do with cost of production, should be exposed.
Businesses should not be allowed to make super profits through fleecing consumers.
Those who want to sabotage our economy by charging ridiculous prices have no place in Zimbabwe.
Online Reporter