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Sunday, May 26, 2024

VAT on imported soya beans removed

Story by Stanley James, Business Editor

Food security mitigation measures to guarantee industry supplies at stable prices are in motion, with the government removing the Valued Added Tax (VAT) on imported soya beans to increase cooking oil production.  

The latest Statutory Instrument availed to the ZBC News indicates that the move will guard against the effects of the El Nino-induced drought in terms of overall local soya bean output.  
The move is also aimed at stabilising prices for the commodity.  
Another feature of the latest government directive is to further enhance the availability of the commodity.            

It is part of the government’s cocktail of short to long-term measures aimed at ensuring the availability of agro-processed goods while cushioning consumers in terms of accessibility.   
The Statutory Instrument notes that it forms a key component of identifying the needs of the nation taking into account the impact of climate change on the economy.    
The release of the directive comes at a time when players within the cooking oil value chain have been riding on a growth trajectory credited to various interventions which have allowed access to affordable foreign currency for production.  
The trend has also seen the country’s retail shelves boasting of over 80% of locally produced cooking oil.       
Statistics indicate that Zimbabwe requires over 240 000 tonnes of soya beans for stock food and agro-processing industries.  
A government food and livestock report also states that demand for soya beans has further increased on the back of the livestock industry growth.     
The Confederation of Zimbabwe Industries survey also notes that the cooking oil subsector has also experienced a rebound in overall production.

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