New Zimbabwe.com

Zim tax rebate benefitting firms under Treasury scrutiny

By Alois Vinga


FINANCE Minister Mthuli Ncube says Treasury will soon follow up on local firms that have benefited from various tax rebate regimes availed by government to see if the policy has had any positive effect on growth and job creation in the country.

Speaking to business leaders Monday, Ncube said several companies in Zimbabwe have benefited immensely from both import and export rebates since 2009.

“I want each of these companies to tell me the benefits they derived from these rebates such as their growth, how many jobs were created?

“Such information will be helpful to link the fiscal policy to rebates in order to make sure that companies which create more jobs continue to benefit,” he said.

The Treasury boss said that records at his disposal show that if one went back to June 2011 up to May 2019, goods under duty rebate had a total value of US$539 million in exports, resulting in Zimbabwe Revenue Authority (ZIMRA) foregoing revenue amounting to US$158 million which was a benefit to the companies.

Some of the firms which benefited include Modzone Textiles, Trade Kings, Willowton, Dairbord, Associated Newspapers Zimbabwe and Fidelity Printers.

He said mining sector benefits between 2011 and 2019 was something close to US$704 million while revenue foregone by treasury was at US$104 million.

The agriculture sector also had quite similar benefits on imports to the tune of US$5.6 million with US$780 000 revenue being foregone.

“In tourism sector, the value of the import rebate for a similar period saw revenue foregone being at US$25.2 million and benefits were on suspension of duty on tour operators bus imports, goods used in the tourism sector,” he said.