Chinamasa scraps tax on basic commodities, says he has to consult the people

In an endeavor to harmonise taxation matters, the SADC region has developed VAT guidelines which enable Member States to sustain and enhance tax revenues on an equitable and efficient basis.

Member States have, thus, agreed that the list of zero rated and exempt products should be streamlined in order to achieve the following objectives:

• Broaden the tax base;
• Enhance revenue generation;
• Promote administrative efficiency;
• Minimise corruption
• Ensure similarity among Member States; and
• Enhance equity and fairness among others.

Mr. Speaker Sir, in the SADC region, Zimbabwe has one of the longest list of zero rated and exempt products.  The list of zero rated and exempt products include, but not limited to the following:

• Grains such as maize and wheat;
• Mealie meal;
• Bread;
• Cooking oil;
• Salt;
• Milk;
• Fruits;
• Vegetables;
• Eggs;
• Inputs for manufacture of cooking oil;
• Soya beans;
• Protective clothing;      
• Animal feeds and remedies;
• Pesticides;
• Fertilizers;
• Medical services;
• Selected pharmaceutical products;
• Domestic supply of electricity;
• Domestic supply of water; and
• Supply of goods such as books, typewriters and maps for use by physically challenged persons, among others.

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