adminCharity Ruzvidzo Chronicle Reporter
THE government should urgently review utility charges and the tax regime to address high production costs that continue to suppress competitiveness of local companies, captains of industry said yesterday.
Contributing during a Buy Zimbabwe sensitisation campaign conference in Bulawayo, industry executives said taxation obligations and utility charges were very high.
United Refineries (URL) chief executive officer Busisa Moyo who also leads the Matabeleland chapter of the Confederation of Zimbabwe Industries (CZI) urged the government to deal with industry’s biggest woe, high cost of production.
“We appreciate the efforts the government has been doing to ensure the survival of industry. We’ve received support with regards to duty support on certain goods at the borders and non-tariffs barriers amongst others.
“Our major problem is on the high cost of production. Electricity supply is very essential in the industries. Zesa needs to be competitive in terms of charges instead of their high prices,” he said.
Moyo said the present tax system was “skinning” the business sector, which is already burdened by imports.
“Having a formal business is like a sign to be charged high taxes. The taxes being charged by Zimra also need to be reviewed as they contribute to the high cost of production. The consumer is highly affected in this process as they’re forced to pay high prices for goods and services,” he said.
“A company may be charged $100 penalty by say city council, failure to pay the amount for whatever reason one is charged another $100. That’s unrealistic but very real in Zimbabwe.”
Moyo said companies had the ability to produce enough to meet local demand.
“As companies, we’re willing to play our role of producing and providing services to maximum capacity to meet local demand. We can only achieve this goal if we operate in a conducive environment, which has reasonable tax charges, electricity and council charges that are competitive,” he said.
Sport, Arts and Culture Minister Andrew Langa who also attended the conference said the Buy Zimbabwe campaign should go beyond calling citizens to buy local products but translate into practical appreciation of circumstances affecting the country.
“The campaign is indeed commendable and we fully support the whole programme. As government, we advise the campaign to pay attention to life circumstances that our population goes through on a day-to-day basis,” he said.
“Having understood their circumstances and sought to come up with ways and means of supporting people, it will only be a matter of time before citizens realise and reciprocate the favour by buying Zimbabwe.”
The meeting was organised by the Buy Zimbabwe campaign and Innotec to raise awareness on the importance of buying local goods to promote local firms and saving jobs.
The campaign ends today with a business exhibition at the City Hall.
Online Reporter