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Zimbabwe exempts VAT on basic goods amid price hike concerns
10 Jan 2024 at 00:57hrs | Views
The Zimbabwean government has revised taxes on basic goods, which were introduced in the 2024 national budget, amid rising price hike concerns.
In a statement on Monday night, Zimbabwe's Minister of Finance, Economic Development and Investment Promotion Mthuli Ncube said some basic goods will be excluded from a 15 percent Value Added Tax (VAT).
"Basic food items that include bread, milk, cooking oil, mealie meal, salt, sugar, flour, are exempt from VAT purposes, hence there should be no price increases (with them)," he said, adding that other basic commodities including meat, rice, bath and laundry soap, washing powder and toothpaste have been moved to standard rating, which means price increases should be minimal.
Retailers can buy directly from manufacturers as long as they have a valid tax clearance certificate and are VAT registered, Ncube said.
The tax adjustments came after the treasury constituted a technical committee to gather feedback on the new tax measures from business entities under the umbrella body of the Confederation of Zimbabwe Industries.
Last week, the Zimbabwe Revenue Authority, the body responsible for collecting taxes and other revenue streams for the government, announced new measures that permitted only tax-compliant wholesalers to procure directly from manufacturers.
In a statement on Monday night, Zimbabwe's Minister of Finance, Economic Development and Investment Promotion Mthuli Ncube said some basic goods will be excluded from a 15 percent Value Added Tax (VAT).
"Basic food items that include bread, milk, cooking oil, mealie meal, salt, sugar, flour, are exempt from VAT purposes, hence there should be no price increases (with them)," he said, adding that other basic commodities including meat, rice, bath and laundry soap, washing powder and toothpaste have been moved to standard rating, which means price increases should be minimal.
Retailers can buy directly from manufacturers as long as they have a valid tax clearance certificate and are VAT registered, Ncube said.
The tax adjustments came after the treasury constituted a technical committee to gather feedback on the new tax measures from business entities under the umbrella body of the Confederation of Zimbabwe Industries.
Last week, the Zimbabwe Revenue Authority, the body responsible for collecting taxes and other revenue streams for the government, announced new measures that permitted only tax-compliant wholesalers to procure directly from manufacturers.
Source - Xinhua
