BASIC GOODS EXEMPT FROM VAT newsdzeZimbabweNewsdzeZimbabwe

BASIC GOODS EXEMPT FROM VAT newsdzeZimbabweNewsdzeZimbabwe

The government announced the exemption of a number of goods and services from value-added tax, in a move that is likely to lead to lower prices.

According to Legal Instrument No. 15 of 2024, goods and services covered by the new exemption include water for domestic use, local authority rates, household electricity, certain agricultural equipment and machinery, and sanitary clothing.

Certain fuel and fuel products, ethanol fuel, road tolls, tobacco, commission fees on tobacco sales, goods and services provided by medical legal bodies and ancillary services provided by the National Pharmaceutical Company are also exempt.

VAT is an indirect consumption tax imposed on the supply of taxable goods and services.

It is imposed on transactions and not directly on income or profit.

The tax is also imposed on the import of goods and services.

In Zimbabwe, value added tax was introduced in 2004 to replace the previous sales tax system.

The Second Republic is currently working on measures to stabilize prices for goods and services.

Addressing the first Cabinet session of the year at State House in Harare on Tuesday, President Mnangagwa said the government was implementing prudent fiscal and monetary policy measures.

“Prudent fiscal and monetary policies and promoting a favorable business environment remain critical to the stability and growth of our economy,” he said.

“Accordingly, the fiscal and monetary authorities are implementing a range of policy measures to halt price increases, stabilize the foreign exchange rate, preserve the value of our currency, and ultimately encourage saving.” Sunday mail

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