Consumers welcome govt decision on duty

TATENDA CHIKARA IN CHIVI

Consumers have welcomed governments’ decision to allow  Zimbabweans to import some basic commodities without paying duty, Business Times can report.

Government suspended import duty on goods such as cooking oil, rice, sugar,milk powder, salt, soap and maize meal, among many others, as part of efforts to counter unrelenting price hikes.

“As the Consumer Council  of Zimbabwe (CCZ), we are happy with the government announcement that they had scrapped duty on certain basic commodities used daily. We had noted that commodities such as sugar, flour, salt and meat prices were continuing to go up.

“This will make consumers afford to buy goods and also create competition in business that will stabilise prices,” the CCZ Masvingo regional manager Ndumiso Mgutshini told Business Times.

He also urged consumers to desist from panic buying as this would cause artificial shortage.

“We also urge consumers not to panic buy as this would create an artificial shortage, this can lead to too much demand that also cause increase in prices,” Mgutshini added.

This decision to amend SI 122 was made by the Cabinet recently to allow companies and individuals to import basic commodities that are in short supply due to shortage and panic buying by consumers.

The Secretary of National Council of Disabled in Zimbabwe, Moses Chitombo, echoed sentiments by Mgutshini saying: “Life has been hard for us. The removal of duty is a welcome idea but we fear some business will take this as an advantage again and continue making huge profits out of it,” Chitombo said.

An economist and director at the Labour and Economic Development Institute in Zimbabwe, Prosper Chitambara said although this was a noble idea it was going to affect local producers.

“Scrapping of duty can help increase supply of basic commodities in the economy that will make consumers folk less on basics. If competition increases that means prices will go down and also it also helps cross border traders.

“This will, however, affect local producers since  local products will be a bit expensive as compared to goods imported,” Chitambara echoed.