THE government has imposed a 15% value-added tax (VAT) on all meat products and cereals, in a move likely to trigger a sharp increase in the prices of most basic foodstuffs, as retailers are likely to pass on the cost to end users.
Source: Govt imposes 15% VAT on meat, cereals – NewsDay Zimbabwe February 1, 2017
BY BLESSED MHLANGA
The new tax regime, which becomes effective today, was introduced by Finance minister Patrick Chinamasa under Statutory Instrument (SI) 20 of 2017 and affects all meat products — including offals and fish — rice, maheu and margarine.
Previously, products such as rice, fish and meat were exempt from the 15% VAT, which has largely made the prices of these basic commodities relatively cheap and affordable for low-income earners.
The SI effectively lifts the tax exemptions on most meat products and cereals.
Zimbabwe Congress of Trade Unions secretary-general, Japhet Ncube condemned the move, saying it was illogical for the government to impose additional taxes on basic commodities at a time salaries were stagnant, with most families struggling to put food on the table.
“It is a very sad situation that the government has seen it prudent to tax basics, which the majority of our people survive on, especially at a time wages and salaries have not been increased in a very long time. They could have looked at other luxury products like cars, beer and cigarettes, instead of taxing basic commodities,” he said.
Opposition MDC-T spokesperson, Obert Gutu, said the imposition of VAT on basics commodities confirmed the notion that the Zanu PF government was “anti-people”.
“The Zanu PF regime has a sordid and cruel reputation of being anti-people. This regime takes a special kind of pleasure in seeing the majority of the people suffer. SI 20 of 2017 is meant to extort more taxes from the already overtaxed, poor and struggling consumer. This regime is desperate to raise money using both conventional and unconventional methods,” he said.
Gutu said President Robert Mugabe’s government was broke and had run out of ideas to save the collapsing economy.
“The Zanu PF regime is bankrupt and they are now scrounging all over to raise money to pay for Robert Mugabe’s extravagant and wasteful lifestyle. It’s just a matter of time before this regime completely fails to pay civil servants their monthly salaries,” he said.
COMMENTS
more theft from the populus…
This is unfortunate and insensensitive to the plight of the struggling masses. Are these things luxeries or basics? To Chinamasa and others like him the ordinary person should not eat meat or cereal even MAHEU!!!! Wake up people.
The people of this country will never ever ‘wake up’ or ‘stand up’ to the current regime – so they get exactly what they deserve. If it’s 15% VAT on nyama today, 20% VAT on mealie meal tomorrow, that’s just tough s…t . Don’t come crying to us tomorrow.
If you were on the brink of starvation the “peoples government” want s now to make sure
They misspelled ” lives” the motto should’ve said ” Black levies matter”
Unfortunately people like Chinamasa don’t care for anyone else except maintaining their life styles. I would like to think that he and others like him have got cows that they are selling so that went to maximise. Sometimes I begin to doubt if we are the same species.
What this means for the man in the street, is that he and his family now eat 15% less. Spare a thought for the pensioners. Also, this new law needs to be policed. I went into a butchery yesterday and found that the price of their meat had gone up 30%. I walked out. People be aware of unscrupulous retailers.
I have heard some people say that Chinamasa is a better devil and have always begged to differ, guess I was correct.
Moral bankruptcy is the best way I can describe this inconsiderate and insensitive move by the government. A government feeding off the poor masses instead of vise versa. The poor are going to be left worse off and with an election coming this is a reminder to us all when we vote come 2018.
Just thinking aloud.