Stakeholders welcome move to stabilise food prices

THE Government-initiated drought mitigation measures, which include the removal of value-added tax (VAT) on maize, rice, and potato seed, have been hailed with captains of the industry saying the move is expected to contain price hikes.

Cabinet said effective from July it will waive VAT on rice, maize, potato seed, cooking oil, and genetically modified maize for stock feed whose milling and distribution will be strictly supervised.

Confederation of Zimbabwe Retailers( CZ R) president Mr Denford Mutashu said the measures should be commended.

“The retailers and wholesalers would like to welcome the Cabinet announcement by Honourable Minister of Agriculture Dr Anxious

Masuka on measures to ensure the availability and affordable pricing of basic food. The removal of VAT on rice is a welcome move,” he said.

“As the next substitute for maize, rice must be affordable to all households. This is in line with regional parity and will ensure our retailers can compete with imports.”

Association for Business Zimbabwe(A BU Z) chief executive Mr Victor

Nyoni said Government measures are expected to reduce the prices of selected commodities while reducing work for industry.

“When the Government reviews VAT it is reducing the price of a product when it reaches consumers. It is cushioning the general public which is good,” he said.

“As the business sector, we have been collecting VAT on behalf of the Government and this means that it will be less work for our accountants, but also we expect that as the prices of goods decrease, more consumers will be able to buy more products which will be good for business.”

Ministry of Health and Child Care deputy director of nutrition services Mr Handrea Njovo said there is a need for consumers to diversify their nutritional composition.