Government Implements VAT Exemption on Basic Grocery Items to Curb Price Hikes

• The Government has exempted selected basic grocery items from Value Added Tax (VAT) starting from 01 February 2024.
• The exemption includes items such as bread, milk, cooking oil, and maize meal.
• Business leaders had raised concerns that the proposed VAT measures would lead to price hikes.
• The Finance Minister, Mthuli Ncube, repealed the Customs and Excise (Suspension) Regulation 2003 through Statutory Instrument 10A of 2024.
• Many businesses have already increased prices due to rising taxation and energy costs.
• Bakers Inn, a subsidiary of Simbisa Brands, has reduced the cost of bread from US$1.10 to US$1.

Source: pindula.co.zw

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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