NEW: Retailers speak on scrapping of VAT on rice

Online Reporter

THE Confederation of Zimbabwe Retailers (CZR) has renewed its call for the Government to expedite the implementation of a zero-rated Value-Added Tax on rice, a decision that was approved by the Cabinet in March.

In a letter addressed to the Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube, CZR expressed deep concern over the ongoing delay in implementing the measure.

According to CZR president Mr Denford Mutashu, the delay in removing VAT on rice has had a detrimental impact on retailers struggling to compete with smuggled rice imports from South Africa.

“The failure to implement zero-rated VAT on rice is hindering retailers’ ability to compete with smuggled goods,” Mr Mutashu said.

“This is not only hurting businesses but also depriving the government of much-needed revenue.”

Mr Mutashu said low rice prices could be a relief to the public following the El Nino induced drought.

“We urge the Government to take immediate action to implement zero-rated VAT on rice,” he said.

“This measure is essential for alleviating the financial strain on consumers and supporting local businesses.”