Yesterday, Finance Minister Patrick Chinamasa shelved implementation of Statutory Instrument 20 (SI20), which imposed 15% VAT on rice, meat, potatoes, margarine, cereals and mahewu, telling MPs in a ministerial statement that he first had to consult before introducing the levy.
Said Chinamasa:
Following our debate and stakeholders’ representation, where concerns have been raised regarding SI20, I am proposing to shelve implementation of SI20, which levies VAT on the listed products. This will allow for further consultation with relevant stakeholders, and these consultations begin with Parliament because I need input from the House
However Chinamasa said he had to get something to tax in order to get revenue to pay salaries and finance other activities, but MPs could be heard interjecting, saying he needed to cut down on the Executive’s foreign travels. Chinamasa told the House that he charged the 15% VAT on the products on the basis of Sadc protocols that Zimbabwe ratified, where member States are supposed to harmonise tax regimes.
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