Duty on basics restored: Local manufacturers breat...

Duty on basics restored: Local manufacturers breathe sigh of relief

Zim Now Writer

Manufacturers of basic commodities will breathe a sigh of relief following the restoration of duty on a list of some basics by the government.

Through the Statutory Instrument 10A of 2024, the government has reinstated duty on Cooking Oil, Maize meal, Milk, Sugar, Rice, Flour, Salt, Bath Soap, Laundry Soap, Washing Soap, Washing Powder, Toothpaste and Petroleum Jelly with effect from 1st February, 2024.

“IT is hereby notified that the Minister of Finance, Economic Development and Investment Promotion, in terms of section 235 as read with section 120 of the Customs and Excise Act [Chapter 23:02], has made the following regulations:-

“These regulations may be cited as the Customs and Excise (Suspension) (Amendment) Regulations, 2024 (No. 272).

“The Customs and Excise (Suspension) Regulations, 2003, published in Statutory Instrument 257 of 2003 (hereinafter called ‘the principal regulations’), are amended by the repeal of section 91 (Suspension of duty on Cooking Oil, Maize meal, Milk, Sugar, Rice, Flour, Salt, Bath Soap, Laundry Soap, Washing Soap, Washing Powder, Toothpaste and Petroleum Jelly) with effect from 1st February, 2024,” read the notice.

The government had suspended duty as a temporary measure to address wanton price increases by local manufacturers as well as limited supply of goods into the formal market.

In coming up with the decision, the treasury said small and big businesses were the only ones allowed to import.

“While the intention is to protect the general consumer from the price increase, the general consumer will not be importing, it’s small businesses and big to some extent who will be importing and then retailing in US dollars,” Finance Ministry Permanent Secretary George Guvamatanga said.

But local manufacturers like Hippo Valley cried foul, saying the decision had “displaced locally produced sugar on the local market”. Hippo’s sugar sales fell 14%.