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Ivan Zhakata-Herald Correspondent
THE Shipping and Forwarding Agents’ Association of Zimbabwe (SFAAZ) has applauded the Government’s move on reduced Value Added Tax (VAT) for essential imports.
This follows the promulgation of Statutory Instrument 92 of 2024, which exempts essential goods like potato seeds, white sugar, animal feed, fertilizers, pesticides and cultivation seeds from import VAT.
SFAAZ chief executive officer, Mr Washington Dube said the move is a clear sign that Government is listening to industry’s concerns.
Mr Dube said they had appealed to the Ministry of Finance, Economic Development and Investment Promotion to consider revisiting the VAT regulations.
He said Government is dedicated to growing the agriculture sector as evidenced by the exemption of fertilisers, pesticides and animal feed from the tax.
Mr Dube said they expect the changes to lower the prices of these products for the benefit of farmers.
He also commended Government for retroactively applying the VAT exemption to white sugar, soybeans, and oilseeds.
This means companies that paid import VAT on these goods since January 1, 2024, can claim refunds. These refunds can then be used for business improvements like equipment upgrades.
Mr Dube said Government’s approach will boost business confidence and accelerate Zimbabwe’s goal of becoming an upper-middle income nation by 2030.
Online Reporter