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Zimbabweans must brace up for a tougher economic dispensation as 2024 kicks off on high inflationary environment, squeezing the already struggling masses.Despite the Government of Zimbabwe exempting bread and other basics from value Added Tax VAT, bread has shockingly gone up charging usd $1,30 from USD $1.
Treasury was forced to review some of the measures introduced through the 2024 National Budget, with basic food items such as bread, milk, cooking oil, and maize meal, exempted from VAT.
Meat, rice, bath and laundry soap, washing powder, toothpaste, petroleum jelly and other basics have been moved to standard rating, which means price increases should be minimal.
Minister of Finance and Economic Development Professor Mthuli Ncube announced the changes following concerns that the heavy taxes could have unintended consequences.The Ministry of Finance and Reserve Bank of Zimbabwe RBZ constituted a technical committee to receive input from representative members through the Confederation of Zimbabwe Industries.
Their committee undertook an impact analysis on the implementation of some of the measures introduced through the 2024 budget, in particular with regards to tax compliance en route to the market, mitigation of consequences of the sugar on health through a special surtax, and a few tariff lines omitted on exemption from VAT, in order to cover the whole value chain.
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