The Cost Of Meat Has Gone Up In Zimbabwe Due To The New 15% Value Added Tax

The cost of meat in Zimbabwe has increased due to the introduction of a new 15% Value Added Tax (VAT) implemented through the 2024 National Budget by Finance Minister Mthuli Ncube.

According to a statement from Texas Chicken, a subsidiary of Associated Meat Packers that specializes in chicken, their chicken prices have remained the same, but they have added the VAT. In a statement seen by Pindula News, the company said:

Dear Valued Customers

Texas Chicken have been forced to increase beef, chicken, pork and fish prices in line with the introduction of 15% VAT by the Ministry of Finance on the aformentioned product categories.

This is effective 1 January 2024. Please note that our product prices are NOT being increased by our butcheries, but only by the addition of VAT.

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Thank you for understanding.

TEXAS CHICKEN MANAGEMENT

Journalist Hopewell Chin’ono pointed out that these taxes burden poor Zimbabweans who are already facing unemployment and unstable incomes due to a struggling economy and failed politics. He said:

This is the moment those that say they don’t do politics look foolish and stupid because politics is now doing them, it always does. When we talk about the direct consequences of corrupt rule, incompetence and misplaced policies, this is what we will be talking about! These economic failures will affect you regardless of your political views, when we fight for a better society, we are fighting for everyone including those who are used by ZANUPF as its social base! Economic policies affect people across various political perspectives, they don’t segregate. The conversation around improving society involves addressing such political issues that impact everyone financially especially the poor in townships and rural areas regardless of their political affiliation.

Some experts, like Professor Gideon Zhou from the University of Zimbabwe, who specialises in Governance and Public Management, have expressed concerns that the budget could have significant negative effects. He said:

Indeed, a very extractive budget informed by the canons of austerity. However, extracting revenue from an already over-taxed and poverty-ridden citizenry looks like a recipe for far-reaching worse-off livelihood future scenarios. We are at risk of compromising the concerns of Vision 2030 which envisages not only a HEALTHY ECONOMY but a HEALTHY SOCIETY as well. The 2024 Budget seems to be leaving society behind in its efforts to steer the economy towards a middle-income ranking.

Government authorities, including Finance Minister Mthuli Ncube and Reserve Bank of Zimbabwe Governor John Mangudya, have defended the taxes, stating that they are necessary to generate revenue for the struggling economy. They argued that Zimbabwe is unable to secure credit facilities from international financial institutions, hence the need to raise revenue internally. 

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