News / National
Zimbabwe govt scraps VAT on livestock sales
26 Jul 2024 at 06:35hrs | Views
The Ministry of Finance, Economic Development, and Investment Promotion has proposed VAT exemptions on live animals to boost meat demand and support formal trade in the livestock sector.
Last year, Minister Mthuli Ncube announced a VAT increase from 14.5% to 15%, effective January 1, 2024, which led to higher meat prices as producers adjusted to the new rate.
In his 2024 Midterm Budget and Economic Review, Professor Ncube noted that the VAT increase on live animals and meat has led to reduced demand, influenced by El Nino-induced drought and a rise in informal trading.
To address this, he proposed VAT exemptions for live cattle, pigs, goats, sheep, bovine semen, poultry meat, and kapenta to encourage formal trade and restore meat demand.
These changes, part of the 2024 National Budget's broader tax initiatives, are designed to enhance revenue while protecting local value chains. The new measures, enforced through Statutory Instruments, took effect on January 1, prompting businesses to adapt to the updated regulations.
Last year, Minister Mthuli Ncube announced a VAT increase from 14.5% to 15%, effective January 1, 2024, which led to higher meat prices as producers adjusted to the new rate.
In his 2024 Midterm Budget and Economic Review, Professor Ncube noted that the VAT increase on live animals and meat has led to reduced demand, influenced by El Nino-induced drought and a rise in informal trading.
To address this, he proposed VAT exemptions for live cattle, pigs, goats, sheep, bovine semen, poultry meat, and kapenta to encourage formal trade and restore meat demand.
These changes, part of the 2024 National Budget's broader tax initiatives, are designed to enhance revenue while protecting local value chains. The new measures, enforced through Statutory Instruments, took effect on January 1, prompting businesses to adapt to the updated regulations.
Source - The Chronicle
