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Harare Bureau
Import duty and tariffs on selected items will go up soon, with the Government already working on measures to protect the local industry from competition from cheap products.
Speaking during a question and answer session in the Senate yesterday, Industry and Commerce Minister Mike Bimha said the Government was also crafting a Bill to prevent dumping of sub-standard commodities on the local market.
“What we are doing as a ministry is that we are reviewing the entire tariff structure, in other words we want to look at those goods that we produce, if we produce item A and item B we are more inclined to impose heavy duty on the importation of those goods that we can produce,” he said.
“At the same time, we are also saying where our local industries are producing certain goods we are looking at reducing or eliminating duty on the raw materials that they require to produce those goods.
“By using those two strategies, what it means is our local producers will find the cost of production going down because we would have reduced duty on raw materials and also we will have increased duty on substitute goods coming into the country.”
Minister Bimha said it was Government’s wish that the two strategies would assist local manufacturers that have been affected by the cheap imports mainly from South Africa and China.
He said smuggling of goods and corruption at border posts were affecting local industry as cheap and substandard goods were finding their way onto the local market.
Minister Bimha said his ministry completed crafting a Bill that would be presented to Parliament soon to create a body that would be responsible for monitoring standard of goods imported into the country.
“We will be introducing to Parliament soon a piece of legislation which will create a regulatory authority which will inspect goods on the basis of standards,” he said.
“Those goods which will have failed to meet the standards will not be allowed into the country.
“Again, we believe this will protect our local industry and ensure that those goods that do come in are goods that meet our set standards in terms of quality.”
Minister Bimha said he will on Monday meet local financial institutions to find ways of coming up with short term financing for struggling companies in the wake of the termination of the Distressed and Marginalised Areas Fund .
He was responding to Manicaland Senator Patrick Chitaka on the fate of the Distressed and Marginalised Areas Fund that was established between Government and Old Mutual during the time of the coalition Government.
Minister Bimha said the fund had ceased to operate and Government was looking at various ways to assist industry, including restructuring the Industrial Development Corporation.
“In the Zim Asset document we have said we would want the Industrial Development Corporation to be configured for industrial development much in the same way Agribank will be poised for agricultural development,” he said.
“We believe that if IDC is configured and sheds off some of its companies and is capacitated it would be in a position to support the funding of industry.”
Minister Bimha also said the finalisation of the agreement between Essar Holdings and Government for the resumption of operations were being finalised.
He said some engineers from Essar were already in the country to refurbish equipment at the former Ziscosteel.
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