New Zimbabwe tariffs draw fire

Will lead to a further decline in value added in commerce and industry Martin Rushmere SUDDEN IMPORT tariff increases in Zimbabwe continue to draw fire from the private sector. Says consultant economist John Robertson: "These are in direct conflict with the country's commitment towards lowering tariffs and giving people access to a wider variety of goods." He predicts that it will lead to a further decline in value added in commerce and industry. Confederation of Industries chief economist Farai Zizhou says the government did not hold discussions with the organisation beforehand. "The new rates are not favourable to industry. We have received numerous complaints from members, who say their position has been made even worse." Said an economic analyst with a Harare stockbroking firm: "This could be an indication that the government's revenue collection is way below target." Robertson says the best way for the government to increase revenue is to devalue the Zimbabwe dollar. "Revenue comes from economic activity, which requires policies that improve activity so that companies can continue to operate and create jobs."