Chronicle Editor
Nqobile Bhebhe
GOVERNMENT has added milk powder and washing powder to a basket of basic commodities that are exempt from import licence, payment of import duty and value-added tax, as part of measures to curb a spate of price increases.
The original list included maize meal, rice, milk, flour, salt, cooking oil, sugar, petroleum jelly, toothpaste, bath soap, and washing soap.
Last week, the Treasury lifted all restrictions on the importation of basic commodities to boost market supplies as part of broader measures geared at tackling resurgent price madness and stabilising the economy.
Announcing the measures, Finance and Economic Development Minister, Professor Mthuli Ncube, said the interventions were necessitated by the resurgence of speculative macro-economic instability in which domestic inflation is driven primarily by the skewed preference for the use of the United States dollar as a savings currency.
Prof Ncube said the escalation in prices has piled enormous pressure on the exchange rate as the skewed preferences have continued to increase the velocity of the Zimbabwe dollar.
The minister said in order to enhance the supply of basic goods to the public, all basic goods will no longer be subject to import licences and will also come into the country free of import duties and taxes.
In a letter dated 16 May, the permanent secretary in the Ministry of Finance and Economic Development, Mr George Guvamatanga, said milk powder and washing powder have been added to the list.
“Please be advised that after further consultations, the Hon. Minister of Finance and Economic Development has approved the addition of milk powder and washing powder to the list of basic commodities that are exempt from payment of import duty and VAT.
“Furthermore, the legal instrument to give effect to the rebate of duty should not be time bound,” reads part of the letter addressed to the Zimbabwe Revenue Authority Commissioner General, Ms Regina Chinamasa.
“The Zimbabwe Revenue Authority is, thus, requested to urgently incorporate the policy position in the draft legal instrument. The measures take effect from 12 May, 2023,” added Mr Guvamatanga.
In earlier correspondence dated 12 May to ZIMRA, Mr Guvamatanga authorised the revenue authority to suspend import duty and import VAT on the basic commodities for a period of six months with effect from 12 May 2023.
“The Zimbabwe Revenue Authority is also requested to urgently draft the necessary legal instrument and implement the duty suspension with effect from 12 May 2023. Furthermore, the Ministry of Industry and Commerce is expected to complement the measure through inclusion of the above goods on the Open General Import Licence,” reads the notice.
Meanwhile, a Cabinet committee has been set up to investigate the latest spate of basic commodity price increases as the Government moves to ensure corrective measures are taken to protect consumers.
The intervention follows an outcry by consumers who say they are being pushed to the receiving end by a wave of unjustified price increases.
The Government has also rebuked some unscrupulous traders, mainly in the informal sector, for demanding payment for goods and services exclusively in foreign currency, a practice that violates the dual currency regulations and is leading to artificial shortages of some items in shops.
Government is on record calling upon producers and traders to embrace fair business practices and treat their customers with dignity in line with the provisions of the Consumer Protection Act.
Synonyms for “ZIMRA”
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