Govt suspends duty on fertiliser imports

Source: The Herald – Breaking news.

 

Professor Mthuli Ncube

Wallace Ruzvidzo, Herald Reporter

GOVERNMENT has suspended duty on fertiliser imports by approved importers with immediate effect, as it moves to ensure adequate supplies during the 2024-2025 summer cropping season.

Those licensed and approved to import duty-free fertiliser but then sell it at an equal or higher price than that charged by those who would have paid duty will have to pay the full duty plus penalties.

The new regulations are contained in Statutory Instrument 178 of 2024 announced by the Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube yesterday.

Prof Ncube said Lands, Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious Masuka would approve a list of reputable importers.

The move comes as the country eyes a 347 percent increase in production.

“It is hereby notified that the Minister of Finance, Economic Development and Investment Promotion has, in terms of section 235 as read with section 120 of the Customs and Excise Act [Chapter 23:02], made the following regulations: — 1. These regulations may be cited as the Customs and Excise (Suspension) (Amendment) Regulations, 2024 (No. 275).

“2. The Customs and Excise (Suspension) Regulations, 2003, published in Statutory Instrument 257 of 2003, are amended by the repeal of section 9(T) (Suspension of duty on fertilisers imported by approved importers) and substitution with the following—

“Suspension of Duty on Fertiliser Imported by Approved Importers 9(T). With effect from the date of publication of this notice and up to a period of twelve months, duty is wholly suspended on fertilisers imported by approved and regulated importers in terms of these regulations: — 1. The Minister responsible for Agriculture shall approve a list of reputable fertiliser importers for the purposes of these regulations,” reads the Statutory Instrument.

Prof Ncube said suspension of duty would not be granted to those without a licence issued by the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development.

“The Commissioner shall grant suspension of duty to an approved importer subject to compliance with section 34C of the Revenue Authority Act [Chapter 23:11].

“The Commissioner shall not grant suspension of duty to an approved fertiliser importer where the importer does not have a licence issued by the Ministry responsible for Agriculture”.

He said the Ministry responsible for Agriculture shall ensure that approved fertiliser importers adhere to responsible pricing of fertilisers for which the Commissioner would have wholly suspended duty payable.

“Any approved fertiliser importer who sells fertilisers for which duty would have been suspended at prices equal or higher than fertilisers on which duty is ordinarily payable shall be liable to pay the duty suspended and applicable penalties,” reads the SI.

Approved importers shall be allowed to exhaust the ring-fenced allocations of 100 000 tonnes of Urea and 150 000 tonnes of Ammonium Nitrate.