New tax measures jolt meat suppliers

MEAT producers and suppliers have started affecting the 15 percent Value Added Tax (VAT) on products and are notifying customers of price increases of various meat products.

The standard VAT increased to 15 percent from 14,5 percent effective January 1, 2023 and in his 2024 budget, Finance, Economic Development, and Investment Promotion, Minister Professor Mthuli Ncube returned the standard VAT rate to 15 percent.

In a notice to customers, one of the meat suppliers Texas Chicken said the butchery will add VAT to their products which will see prices going up.

“Dear valued customers, Texas Chicken have been forced to increase beef, chicken, pork and fish prices in line with the introduction of 15 percent VAT by the Ministry of Finance on the aforementioned product categories.

“This is effective 1 January 2024. Please note that our product prices are not being increased by our butcheries but only by the addition of VAT,” reads the notice by Texas Chicken.

The 2024 National Budget brought in different tax initiatives, which are meant to generate revenue for the country as well as protecting local value supply chains.

The measures came into effect on January 1, with Statutory Instruments being put in place to enforce new measures.

Businesses have also started implementing these new measures in line with the National Budget provisions.

Koala Park Butchery and Abattoir has also issued the same notice saying: “To our valued customers, please note that in line with the gazetted Statutory Instrument 248 of 2023, all of our meat products now include 15 percent VAT effect from 01 January 2024.”

“We look forward to your continued support.”

Different businesses associations have been pleading with the Government to reconsider the newly proposed tax initiatives saying that this will result in increased cost of doing business, which will also affect the consumers as the charges will be passed to them.

They said the introduction of 15 percent VAT on basic commodities would trigger price increases.

The business associations said the tax law that existed before the 2024 National Budget recognised that basic commodities such as maize meal, wheat flour, bread and salt are critical goods needed for the sustenance of life and must be affordable at household level.

They said the intention of the legislature in zero rating these commodities was to ensure that they remain affordable to the generality of Zimbabweans.

Meanwhile, the Government gazetted Statutory Instrument (SI)1 of 2024, which brings into effect the new passport fees starting this month.

The new regulations are in line with the reviewed 2024 National Budget and will see applicants forking out US$150 for an ordinary passport, up from US$120. Emergency passports will now cost US$250. —@SikhulekelaniM1