News / National
Zimbabwe to remove VAT on meat?
28 Aug 2024 at 13:31hrs | Views
Zimbabwe is set to see price cuts on meat and poultry products following a recent policy change that eliminates Value Added Tax (VAT) on these items. This decision, confirmed by Finance Ministry permanent secretary George Guvamatanga, aims to improve food accessibility and nutritional intake.
The VAT removal applies to beef, pork, and poultry, a move that follows criticism of the 2024 Midterm Budget, which had proposed standard VAT rates on live animals and meat. The initial VAT directive was criticized for reducing demand in the meat sector, which is already struggling due to limited disposable income.
Zanu-PF communication director Farai Marapira praised the policy shift, noting that lower retail prices would make nutritious foods more accessible to lower-income families, improve dietary habits, and stimulate the agricultural sector. He also emphasized that the reduction could help combat malnutrition and food insecurity, benefiting both health and the local economy.
However, some market analysts are skeptical, suggesting that the impact of the VAT removal might be limited as businesses could maintain higher prices due to existing profiteering practices.
The VAT removal applies to beef, pork, and poultry, a move that follows criticism of the 2024 Midterm Budget, which had proposed standard VAT rates on live animals and meat. The initial VAT directive was criticized for reducing demand in the meat sector, which is already struggling due to limited disposable income.
Zanu-PF communication director Farai Marapira praised the policy shift, noting that lower retail prices would make nutritious foods more accessible to lower-income families, improve dietary habits, and stimulate the agricultural sector. He also emphasized that the reduction could help combat malnutrition and food insecurity, benefiting both health and the local economy.
However, some market analysts are skeptical, suggesting that the impact of the VAT removal might be limited as businesses could maintain higher prices due to existing profiteering practices.
Source - NewZimbabwe
