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Ivan Zhakata
Herald Correspondent
RETAILERS have called on the Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube to expedite the removal of Value Added Tax (VAT) on rice imports.
This follows a Cabinet decision made in March 2024 to zero-rate VAT on both rice and potato seeds.
In a letter dated October 4, 2024, addressed to Minister Ncube, Confederation of Zimbabwe Retailers (CZR) president Dr Denford Mutashu said they were concerned that, to date, VAT on rice has not been removed.
“This delay has severely impacted retailers, as they are struggling to compete with smuggled rice imports, particularly from South Africa,” he said.
“The influx of smuggled goods is not only diminishing the availability of legitimate rice volumes in our markets but is also likely to lead to long-term negative consequences for the fiscus, resulting in losses across various tax heads.
“As observed with other products such as washing powder and second-hand clothing, rice is becoming another line that is heavily affected by smuggling.
“It is important to reiterate that rice is zero-rated in Southern Africa and across many countries worldwide due to its classification as a staple food. The current high retail prices further strain the budgets of many households, exacerbated by the ongoing drought and the limited availability of grains at household levels.”
Dr Mutashu said they requested Minister Ncube’s urgent intervention to ensure the swift implementation of zero-rating VAT on rice, in line with the Cabinet’s approval.
Online Reporter