Vusumuzi DubeJudith Phiri, Business Reporter
The Government has revoked Schweppes’ privileges that allowed them to import duty-free raw material such as oranges and grape fruits to use at their Beitbridge Juicing plant.
It is understood that the juicing plant had despite being allowed to import duty-free 10 000 metric tonnes of oranges and 5 000 metric tonnes of grape fruits has been selling the by-products exclusively in foreign currency against the dictates of the initial agreement with the Government.
Writing to the company’s managing director, Mr Charles Msipa on Monday, Secretary for Finance and Economic Development, Mr George Guvamatanga said pending conclusion of investigations on their pricing model, the Suspension of Duty Facility has been revoked.
“I wish to advise that, pending conclusion of investigations on their pricing model, the Suspension of Duty Facility has been revoked. In this regard, all new imported consignments will, with immediate effect, be liable to duty at prescribed rates,” said Mr Guvamatanga.
He said on July 1, 2022, the Government provided a once-off suspension of duty facility to the Beitbridge Juicing to import 10 000 MT of oranges and 5 000 MT of grape fruits.
Mr Guvamatanga said the move was meant to augment local supplies, thereby minimising supply disruptions, as well as guaranteeing affordable prices to the general public.
“Treasury, however, notes that the pricing of your products is now exclusively in foreign currency, notwithstanding the Government’s initiatives to promote the use of local currency,” he said.
“You will be aware that beneficiaries of tax incentives are expected to complement Government interventions with responsible pricing models with a view to ensuring affordability of goods which is key in achieving government development objectives.”
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Blessing Chizhande