This week's issues
| Government extends duty waiver on imported basic goods |
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| Written by Takesure Bizure |
| Thursday, 02 July 2009 14:30 |
 HARARE – The government has extended to July 31, 2009, the waiver for the importation of basic commodities duty free. Government suspended customs duty on some basic commodities on 12 May 2008 in order to address shortages of basic commodities on the domestic market. The dispensation expired on 30 June 2009. Finance Minister, Tendai Biti announced the extension of the waiver in the Finance ministry official website (www.zimtreasury.org) on Wednesday. “Given the prevailing capacity constraints being experienced by local manufacturers and the need to ensure continuity of supply of basic commodities at affordable prices,” said Biti, “Government has extended the validity of Statutory Instrument 8 of 2009 which allows duty free importation of some basic commodities to 31 July 2009.” “Government is, however, mindful of the interests of our local manufacturers whose interests and stability is being affected by cheap foreign commodities.” Biti said he would announce new policy measures around the interests of local manufacturers during his Mid Year Fiscal Policy Review to be presented during mid July 2009. Said Biti, “I am, therefore urging all businesses to act responsibly and instill discipline among themselves by not hiking their prices to avoid stoking inflationary pressures.” Fears abound that if government were to impose restrictive measures on the importation of cheaper basic goods, this would have a heavy toll on ordinary Zimbabweans most of whom have no reliable sources of foreign currency while those formally employed are still earning below US$100 per month. On the other hand, local manufacturers are clamouring for their space in the local market saying they need to recover from the effects of Zimbabwe’s hyper inflationary era last year which saw most companies closing down due to viability problems. The problems were caused by lack of foreign currency to finance their operations. Since the liberalisation of the market by government early this year, there has been improvement in foreign currency inflows to the productive sectors of the economy, thereby enhancing capacity utilisation by the domestic industry. |
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