New SI to reverse food stuffs 15% VAT: To clear confusion on basic products prices

Willard Manungo

Mr Willard Manungo

Business Reporter
A NEW Statutory Instrument is being crafted to repeal the implementation of the 15 percent Value Added Tax (VAT) on selected basic consumer products, a senior Government official said.

This clears confusion in the market after business increased prices of basic commodities in the last few weeks, which they blamed on the new tax.

The move had sparked public outcry as consumers felt the new price structure would worsen livelihoods and chew into their meagre incomes. Although Finance and Economic Development Minister Patrick Chinamasa had announced the suspension of the 15 percent VAT last week, most businesses maintained high prices. Treasury had introduced the 15 percent VAT on previously zero rated products such as beef, chicken, fish, rice, potatoes, margarine and mahewu through SI 20 of 2017.

Yesterday Permanent Secretary in the Ministry of Finance and Economic Development, Mr Willard Manungo, said a new SI was being gazetted and the suspension of the new VAT was with effect from yesterday.

He therefore ordered businesses to revert to old prices.

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  • #TeamMugabe #TeamBob #TeamAmai

    Chinamasa must stop doing damage to the Presidency of Cde Robert Mugabe and Dr Grace Mugabe, or he must go.

    ______
    “Munhu Wese Kuna Amai” – Amai President Dr Grace Mugabe is the People’s choice to succeed Life President Cde Robert Mugabe

    • fred

      The people’s choice is crazy

    • JJ

      Iwe the damage has already done.With these economic hardships how can you say stop the damage.

  • george

    PASS THE LAW FIRST then we drop the prices, otherwise we are wrong with ZIMRA who are ready to fine.

  • Only me

    He he takadzidza my foot