Imports increase despite surtax

number of commodities has the goal of protecting local industry against extensive imports.
According to an African Development Bank March 2012 Zimbabwe Monthly Economic Review, imports for January 2012 were 1,13 percent higher than the December 2011 value of over US$587,9 million.
The AfDB attributed imports’ failure to respond to the surtax to the time lag caused by protracted procurement processes. 
“The increase in imports despite the surtax could reflect the lag between the policy pronouncement and import performance given the long procurement process of companies and delivery of goods from suppliers,” said the regional financier.
On January 1, Statutory Instrument 156 of 2011, which introduced a surtax of 25 percent on a range of commodities, was effected.
Between January and February, two other statutory instruments, introducing adjustments to the statutory instrument, were also issued.
The surtax on double cab motor vehicles was scrapped under Statutory Instrument 12 of 2012 issued in January.
Statutory Instrument 22A of 2012, which took effect from February 23 2012 re-introduced traveller’s rebate of a duty-free allowance of US$300 on clothing and shoes following a huge outcry from the public.
The introduction of the statutory instruments was aimed at protecting local industry against imports as well as to raise Government revenue.
However, the impact of these cannot yet be determined as yet because the extent to which both objectives can be met depends largely on the manner in which imports, especially on the specific products subject to surtax, would respond.
Apparently, disaggregated data on imports for the period under review is not yet accessible.
The challenges also point to the need for the National Statistical Agency to improve its capacities.
From a year-on-year perspective, percentage changes between January 2011 and January 2012 reveal that imports for January 2012 were over 7 percent higher than the January 2011 value.
The AfDB report, however, also noted a positive trend in respect of exports. For the month of January, exports reflected positive performance both in terms of volumes and percentage increases over the preceding year.
Exports for January stood at around US$394,6 million, which was higher than the December value.
In addition, January 2012 exports volumes of over US$394 million were 11 percent higher than the exports value for the same period in 2011.
However, the import/export figures show that Zimbabwe still needs to address the negative balance-of-payments position.
Economist Professor Tony Hawkins believes that improving the balance-of-payments position is the critical factor in addressing the country’s liquidity challenges.
Meanwhile, Zimbabwe has to date realised US$548 million from export shipments. According to data from the Treasury, declared exports shipment for the period January 1 to mid-March 2012 increased by 6,38 percent reaching US$584 million compared to US$549 million declared in the same period last year.