... and reneges on promise to SADC,
writes Martin Rushmere
IN A bid to raise more money and curb the outflow of foreign currency, the Zimbabwe government has abruptly raised import tariffs on a wide range of goods, in direct contradiction of its promises to SADC.
A government notice announced that duty increases varying between 5% and 10% are being imposed on fruit juices, clothing, printed items and miscellaneous spare parts (which, although unclear, is thought to exclude motor vehicle parts).
The chairman of the government's tariff commission, Dzikamai Danha, says he has told the Ministry of Finance that the new tariffs would not succeed. "ItÕs a repetition of August 1998 when the government tried unsuccessfully to ease import pressure by hiking tariffs," he says.
The 14-member SADC grouping has pledged to eliminate tariffs over the next eight years to create a free trade zone.
Analysts say the government is also trying to find more money.
"The sales tax and income
tax departments are becoming increasingly ineffectual," said a tax consultant.
As an indication of just how desperate the government is, sales tax inspectors two weeks ago raided the Harare subsidiary of South Africa's Makro hardware store. Shoppers' invoices were checked and if no legitimate sales tax exemption certificate could be produced, a fine payable in cash was imposed.
