The so-called import duty suspension, purported to be effective May 12, was touted as a plan to ease the ongoing shortages of basics.
But it has emerged that government has not suspended duty but has slashed the figure from Z$2,5 billion per pack of groceries to Z$1 billion.
Stranded trans-border traders who had flooded neighbouring countries to hoard groceries have been forced to leave their merchandise at border posts after discovering that the government announcement was a hoax.
Basic commodities on the list comprise cooking oil, margarine, rice, flour, salt, bath and laundry soap, washing powder, toothpaste and petroleum jelly.
Information minister Sikhanyiso Ndlovu, in making the announcement, said: “The high level of duty, incidental to the current inter-bank rate used in the valuation for duty purposes depresses imported volumes of basic commodities.
“In view of the above, the government is therefore suspending duty on basic commodities on the appended list for a period of 90 days, with effect from 12 May.”
Ndlovu said the inter-bank exchange rate introduced by the Reserve Bank of Zimbabwe where black market rates had converged with the official bank rate had resulted in increased taxation, affecting imports.
he floating interbank rate has resulted in a jump in the exchange rate for major currencies, rates tax authorities were also applying for levying duty.
On Tuesday, the US dollar was trading at Z$320 million.
Post published in: News