GARIKAI FADZI
The government has warned retailers and dealers against recent price hikes of essential commodities that have triggered panic buying at most outlets, a senior official has said.
Vice President Kembo Mohadi told journalists after today’s cabinet meeting that there is no justification for the action, which has resulted in the shortage of basic commodities in the country.
“Government is warning those that have hiked prices and those hoarding basic commodities in order to create artificial shortages, to stop this malpractice forthwith. Government will take stern measures against those who continue to engage in such malpractices, which are bent on inflicting suffering on our people,” he said.
On the two percent tax, which has caused a massive outcry across the market, the Vice President said the tax is yet to be effected.
Said Vice President Mohadi; “Cabinet has been briefed and discussed the effects of the two cents on the dollar tax on the market. We have also been briefed about the exemptions and government is now seized with the fine-tuning of a Statutory Instrument that will operationalise the tax. The two cents on the dollar tax is not yet operational. So there is no need to panic.”
Finance and Economic Development minister, Professor Mthuli Ncube, last week announced upper and lower limits for the Intermediary Money Transfer Tax.
He said transactions below $10 will no longer attract the 2 cents tax, while all transactions between $10 and $500 000 will comply with the new tax regime.
The tax received backing from President Mnangagwa yesterday when he said the Intermediary Money Transfer Tax of 2 cents will remain in force as it is critical in transforming the economy.
He however said there is room for the tax to be refined, going forward if suggestions are proffered, to create a win-win situation for individuals and companies on one hand, and the economy on the other.
