Business / Economy
Govt to review duty on imported raw materials
10 May 2012 at 16:35hrs | Views
Government is expected to review duty on imported raw materials for industry with a view of restoring the competitiveness of locally produced commodities.
The arrangement to review downwards duty on imported raw materials for firms is being done in line with the Industrial Development Policy targets of ensuring that companies add value to locally manufactured goods.
While government officials this week confirmed to that industry is being consulted on the duty reduction structures, a business analyst, Mr Tendai Munyoro says the proposed plan is likely to increase productivity.
"This is quite noble and productivity might rise," said Mr Munyoro.
An economic commentator, Mr Trust Shirichena, believes the review of duty on imported raw materials for industry will balance the playing field between locally produced commodities and imports.
"This will definitely be a positive initiative, let us wait and see," he said.
Zimbabwe's industry is experiencing working capital constraints due to high import costs in a move that is hindering efforts to revive productivity, but experts are of the view that the reduction in import duties will solve problems affecting the restoration of industrial output to full capacity.
The arrangement to review downwards duty on imported raw materials for firms is being done in line with the Industrial Development Policy targets of ensuring that companies add value to locally manufactured goods.
While government officials this week confirmed to that industry is being consulted on the duty reduction structures, a business analyst, Mr Tendai Munyoro says the proposed plan is likely to increase productivity.
"This is quite noble and productivity might rise," said Mr Munyoro.
An economic commentator, Mr Trust Shirichena, believes the review of duty on imported raw materials for industry will balance the playing field between locally produced commodities and imports.
"This will definitely be a positive initiative, let us wait and see," he said.
Zimbabwe's industry is experiencing working capital constraints due to high import costs in a move that is hindering efforts to revive productivity, but experts are of the view that the reduction in import duties will solve problems affecting the restoration of industrial output to full capacity.
Source - Zbc
