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Zimbabwe: Tax On Food Imports Lifted
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UN Integrated Regional Information Networks
16 May 2008
Posted to the web 16 May 2008
Harare
Zimbabwe's government has suspended duty on basic commodity imports for 90 days, after heavy rains and the failure to supply agricultural inputs led to a maize shortfall predicted by government at about one million tonnes.
Analysts said the three-month window had political overtones because it coincided with 27 June, the date announced for the presidential run-off between Morgan Tsvangirai, of the Movement for Democratic Change (MDC), and the incumbent, Robert Mugabe, of ZANU-PF, and was a ploy to buy votes with food.
Food shortages have forced Zimbabwean citizens to make regular shopping trips to neighbouring countries like Botswana, Mozambique, South Africa and Zambia, but some months ago the Zimbabwe Revenue Authority (ZIMRA) imposed duty on consumables brought into the country.
The suspension of duty came into effect on 12 May, although the authorities did not explain why the moratorium was for 90 days. It also coincided with the release of thousands of tonnes of the staple food, maizemeal, at heavily subsidised prices.
There was pandemonium in the streets of the capital, Harare, when maizemeal appeared on the shelves, triggering stampedes in shops and supermarkets.
Tafadzwa Musarara, spokesman for the Grain Millers Association of Zimbabwe, said: "We want to make sure that many households have adequate maizemeal at reasonable approved prices. This is just the beginning of the programme; we want to ensure all households in every province have access to their staple food."
The government-appointed Zimbabwe Electoral Commission (ZEC) announced on 15 May that the second round of voting in the presidential election would be held within 90 days from 2 April, when the first results of the 29 March elections were announced.
According to the Electoral Act, a run-off ballot must be held 21 days from the announcement of results. Outgoing justice minister Patrick Chinamasa said: "ZEC has the authority to extend the period of an election."
MDC spokesman Nelson Chamisa told IRIN that ZANU-PF, which lost control of parliament for the first time since independence from Britain in 1980, was afraid of facing the electorate.
Zimbabweans are intelligent people who will not be bought with a bag of maize
"Some in ZANU-PF have even publicly called for a declaration of a state of emergency, but there is no emergency about the defeat of ZANU-PF. We ... are prepared to give ZANU-PF another electoral drubbing, despite the reign of terror unleashed on the nation by ZANU-PF, the army and the war veterans," he said.
There have been widespread reports of violence since the 29 March poll, allegedly perpetrated by supporters of Mugabe in the rural areas. The MDC claim about 20 people have been killed.
"They [ZANU-PF] are trying to buy Zimbabweans by giving them maizemeal and suspending payment of duty, but we know that Zimbabweans are intelligent people who will not be bought with a bag of maize," Chamisa said.
Sky-rocketing prices
Information and publicity minister Sikhanyiso Ndlovu denied any connection between lifting the duties on food imports and the election run-off. "It is necessary to ensure constant supply of basic imported goods that have been augmenting local supplies. Government is therefore suspending duty on basic commodities for a period of 90 days with effect from 12 May."
Some of the scarcest basic commodity imports will be duty-free, including cooking-oil, rice, margarine, flour, salt, bath soap, laundry soap, washing powder, toothpaste and petroleum jelly.
The cost of imported basic commodities has sky-rocketed since the government floated the currency, previously fixed at Z$30,000 to the US dollar. The latest exchange rate is about Z$225 million to US$1. Within a week of releasing a Z$250 million note, the Reserve Bank of Zimbabwe has introduced a Z$500 million bill.
Zimbabwe's annual inflation rate is more than 160,000 percent, although unofficial estimates have put the rate as high as 700,000 percent; either way, it remains the world's highest inflation rate.
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[ This report does not necessarily reflect the views of the United Nations ]
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