Staff Reporter
Local manufacturers have applauded the re-introduction of duty on basic commodities as this would support local industries and increase the uptake of locally produced goods.
A member of the Confederation of Zimbabwe Industries (CZI) who spoke to this publication on condition of anonymity said that the re-introduction of duty on basic commodities would consolidate the gains that came from the COVID 19 period where an increase in uptake of locally manufactured goods was registered.
“The re-introduction of duty on basic commodities was long overdue. The move would help grow local industries as there would be an increased uptake of locally produced goods. As CZI, we are delighted by this move as it is meant to grow local industries and reduce the country’s import bill,” said the source.
The source added that the reinstatement of duty on basic commodities was also meant to cushion industry from the competition posed by the influx of foreign commodities.
Another source with the Buy Zimbabwe Campaign further said that the re-introduction of duty on basic commodities was a good move as it would further bolster the industrialization gains that have been made by local industry in the supply of basic commodities. The source added that local industry had increased capacity utilization to nearly 57 percent in 2021 from a low of 30 percent.
The same source from Buy Zimbabwe Campaign further claimed that the removal of duty on basic commodities was no longer ideal as 75 percent of shelf space in local stores was now taken up by locally produced goods.
Presenting the 2023 National Budget last month, the Minister for Finance and Economic Development, Professor Mthuli Ncube said that the six months moratorium on duty free importation of basic commodities lapsed on 17 November 2022 and would not be extended in support of the local ‘produce and consume’ thrust.
The suspension of duty on basic commodities was enforced by Statutory Instrument (SI) 98 of 2022 in a bid to cushion consumers from unjustified price increases and avert artificial shortage of basic commodities.
At that time, duty on basic commodities was waived to checkmate some industrialists who had threatened to choke the market in protest of monetary policy measures which they deemed were akin to price controls.
