Duty on basics lowered

Capitalk Reporter/ The Herald |  1 year ago | business

Government has lowered duty for people with free funds to import basic groceries, as one of the measures to contain price rises of basic commodities triggered by manufacturers and importers that have been pushing up wholesale prices.

In addition, farmers who deliver their produce to the Grain Marketing Board (GMB) will now be paid 30 percent of their crop in United States dollars as part of a cocktail of incentives to encourage early delivery of grain and ensure Zimbabwe maximises local production and minimises food imports. Up to now, all grain deliveries were being paid for, in local currency.

The new measures were announced by Finance and Economic Development Minister Mthuli Ncube who said government had been seized with various initiatives aimed at stabilising the economy.

These measures include the desire to contain inflationary pressures, and restore the purchasing power of the local currency, with the primary goal being to increase the domestic and external competitiveness of the economy, and create and preserve jobs.

The measures were also meant to improve livelihoods while limiting damage to the economy, particularly in the face of Covid-19 and more recently, the impact of the geopolitical tensions in eastern Europe.

Commenting on the new measures, Parliament’s Budget and Finance portfolio committee chairperson Dr. Mathew Nyashanu commended government for coming up with a cocktail of measures to stabilise the economy.