Zimra fails to refund importers

STOP charging value added tax (VAT) and duty on machinery imports as the tax collector has no money to refund companies, an oil expresser has said.

Surface Wilmar chairperson Somani Narotam told Industry and Commerce minister Mike Bimha during a tour of the company's plant in Chitungwiza last week that it was owed $1,8 million by the Zimbabwe Revenue Authority (Zimra) in refunds.

"Stop charging VAT and duties on machinery imports. Zimra has no money to refund it. We are not re-selling the machinery," he said.

Narotam said government ministries were not co-ordinated resulting in too much bureaucracy and in the process leading to lost time.

He said there is a problem when government levies duties of 25 to 30% on products that were not available locally.
Narotam said Surface Wilmar had been trying to get land for farming, but to no avail yet the company was willing to support farmers.

Narotam said the company was operating at 10% of crush capacity and even less this year as there was no crop. The plant's seed processing plant is 150 000 tonnes per annum and the company is operating at erratic levels in 2016 due to non-payments of import bills.

Bimha said he was pleased with the success story, saying government was ready to support companies.

"As government we are there to support. I hear your concerns bureaucracy, we are very comfortable in getting that feedback," he said.

Surface Wilmar is owned apiece by Wilmar and Midex Group and 10% by the Industrial Development Corporation.
The company produces Pure Drop cooking oil that is available in 2 litres, 750ml and 350ml packages.