CZR welcomes grains, potato VAT removal
STAFF WRITER
The Confederation of Zimbabwe Retailers (CZR) has welcomed the government’s decision to allow the importation of grain, rice and potato seed to ensure basic food availability in the wake of El Nino induced drought.
The relaxation of duty on the basic goods comes after retailers and millers have been pushing for the removal of rice and potatoes to make them affordable.
Given the preliminary indications from the Crops and Livestock Assessment Report, the Cabinet saw it prudent to open borders to avert hunger in the country.
In a statement, CZR president Denford Mutashu said rice and potatoes are now key staple foods given high consumption at boarding schools and urban areas.
“The retailers and wholesalers would like to welcome the Cabinet announcement by Honourable Minister of Agriculture Dr Anxious Masuka on measures to ensure the availability and affordable pricing of basic food. The removal of Value Added Tax (VAT) on rice is a welcome move. As the next substitute for maize, rice must be affordable to all households.
and this is in line with regional parity and will ensure our retailers can compete with imports,” Mutashu said.
He said the relaxation of grain imports being maize and wheat is most welcome in ensuring that retailers and wholesalers can sufficiently stock up to mitigate against the expected El Nino induced drought.
According to Mutashu, the removal of VAT on potato seed is also welcome as it provides yet another basic food substitute.
“CZR commends the government on announcing duty free importation of maize, rice and cooking oil by households with effect from July 2024. We believe this will go a long way in easing pressure on the general citizenry of the country. The re-activation of the Grain Mobilisation Committee is also a welcome development as it will play a massive role in ensuring effectiveness and transparency.
“Therefore, we would like to thank His Excellency President Dr. Emmerson Mnangagwa and his government for their consultative approach. We are happy that all our recommendations have been taken on board,” he said.
Retailers hope that the necessary statutory instruments on the part of the government will be fast tracked to ensure pricing is effected on the shelf as a matter of urgency.
“As an organisation we will strive to ensure responsibility, guaranteeing availability and fair pricing on basic staple foods like Maize Meal, Rice, Flour, and Cooking Oil. Now that the government has done its part, It is our responsibility as retailers and millers to ensure consumers are protected and not short-changed in this difficult drought season,” Mutashu said.