News / National
Tongaat Hullets slams Zimbabwe's tough fiscal measures
04 Jul 2024 at 05:29hrs | Views
Tongaat Hullets, a listed agriculture and agri-processing firm, has reported on its performance for the period ending March 31, 2024, amidst challenging fiscal measures in Zimbabwe.
The company criticized Statutory Instrument 80 of 2023, which initially suspended import duties on basic commodities like sugar but was later repealed in the last quarter, impacting industry operations and contributing to a decline in financial performance.
Additionally, more aggressive corporate taxes introduced from January 2024 increased overall business costs across the economy.
Despite these challenges, Tongaat Hullets recorded an inflation-adjusted operating loss of ZWL1.3 trillion for the year.
Currency and inflationary pressures continued to distort financial reporting, but the company managed a net monetary gain of ZWL2.6 trillion, a significant turnaround from the previous year's monetary loss. This gain was primarily due to indexing effects related to actuarial adjustments on post-retirement medical aid obligations and retirement gratuity, which totaled ZWL1.3 trillion. Excluding these adjustments, the company would have reported a loss before tax of ZWL0.2 trillion.
Looking ahead, Tongaat Hullets emphasized its commitment to minimizing business risks, creating value, and seizing opportunities in the coming year. Despite the complexities posed by economic conditions, the company remains focused on ensuring sustainable operations while navigating future uncertainties.
The company criticized Statutory Instrument 80 of 2023, which initially suspended import duties on basic commodities like sugar but was later repealed in the last quarter, impacting industry operations and contributing to a decline in financial performance.
Additionally, more aggressive corporate taxes introduced from January 2024 increased overall business costs across the economy.
Despite these challenges, Tongaat Hullets recorded an inflation-adjusted operating loss of ZWL1.3 trillion for the year.
Currency and inflationary pressures continued to distort financial reporting, but the company managed a net monetary gain of ZWL2.6 trillion, a significant turnaround from the previous year's monetary loss. This gain was primarily due to indexing effects related to actuarial adjustments on post-retirement medical aid obligations and retirement gratuity, which totaled ZWL1.3 trillion. Excluding these adjustments, the company would have reported a loss before tax of ZWL0.2 trillion.
Looking ahead, Tongaat Hullets emphasized its commitment to minimizing business risks, creating value, and seizing opportunities in the coming year. Despite the complexities posed by economic conditions, the company remains focused on ensuring sustainable operations while navigating future uncertainties.
Source - NewZimbabwe
