Government has suspended duty on listed basic commodities in order to cushion the consumers from runway prices.

This Ministry of Finance and Economic Development introduced measures to ensure affordable access to basic commodities by directing the Zimbabwe Revenue Authority (ZIMRA), to draft the relevant statutory instrument to ensure the smooth urgent implementation at the country’s exit and entry points.

“Reference is made to the Press Statement by the Minister of Finance and Economic Development, Professor Mthuli Ncube, where a pronouncement regarding introduction of measures aimed at ensuring accessing to affordable basic commodities in view of recent substantial increases in prices of locally manufactured products.

“ZIMRA is also required to urgently draft the necessary legal instrument and implement the duty suspension beginning midnight, 17 May 2022, which should coincide with the gazetting of the relevant legislation,” said the Secretary for Finance and Economic Development, George Guvamatanga.

The listed commodities for the six months duty exemption are, rice; flour; cooking oil; margarine; salt; sugar; maize meal; milk powder; infants milk formula; tea, whether or not flavoured; petroleum jelly; tooth paste; bath soap; laundry bar; and washing powder.

Zimbabwe has witnessed a rapid rise in prices of commodities on the local market, prompting the Government to allow ordinary citizens with access to US Dollar to import basic commodities for their own use to counter "substantial" price increases by retailers.  He said this would be done through the lowering of import tariffs and other accompanying measures.

Meanwhile, the suspension of import duty on basic commodities creates competition for the local products which have enjoyed monopoly on the supply chain, hence creating price speculation which increased the price of basic commodities to the disadvantage of the consumer. The move by Government will help in lowering the ever rising cost of basic commodities.