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Natasha Chamba, Business Reporter
THE Government has taken a bold step towards preventing generalised price increases of goods and services by providing relief through refund of excise duty on fuel consumed by registered businesses in key economic sectors.

The move follows fuel price adjustments which the Government effected over the weekend to counter the prevailing shortage of the commodity and other goods and services in the market.

In a statement, Finance and Economic Development Minister Professor Mthuli Ncube said the relief through refund of excise duty on fuel consumed by registered businesses was aimed at benefiting enterprises in the manufacturing, mining, agriculture and transport sectors.

The fuel price review has seen a litre of petrol and diesel pegged at $3, 31 and $3,11 respectively from an average of $1,37.

Prof Ncube said the relief to be provided would be equivalent to the difference between the prevailing rates that were applicable prior to the change.

“Cognisant of the need to prevent generalised price increases for goods and services following the fuel price adjustments, Government has decided to provide relief through refund of excise duty on fuel consumed by registered businesses in the following sectors: manufacturing, mining, agriculture and transport,” he said.

Prof Ncube said for businesses to benefit from the relief, they had to meet a certain criteria which encompassed four requirements.

“The prices of goods and services by beneficiaries should not have increased relative to the latest change in the price of fuel.

“The beneficiaries should be registered and compliant for tax purposes.”

“Beneficiaries should be members of recognised business associations and beneficiaries should provide evidence of the productive use of fuel,” he said.

The Finance Minister said consultative engagements would be held with the respective sectors, responsible ministries and the regulatory authorities with a view to determining modalities of implementing the relief.

Prof Ncube however, said any abuse through misrepresentations of facts with a view to arbitrage benefits from the facility would result in denial of use of the facility and imposition of a penalty.

He urged all business leaders to desist from any form of rampant market indiscipline, and was concerned with the recent unjustified price increases which were undermining Government efforts to restore macro-economic stability.

The Government has also instructed businesses that have wantonly hiked prices since the latest fuel price review to revert to the pre-January 12, 2019 prices.

Authorities have already put in place a price adjustment compensatory framework through refunds.

— @queentauruszw