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

Countries such as Namibia, Lesotho, Malawi, and Zambia have a minimum list of zero rated and exempt products.  Such countries charge VAT on products such as rice, fresh milk, fruits, eggs and meat products among others.

However, in our circumstances, following the debate that took place here and stakeholder representations, wherein concerns have been raised regarding potential informalisation due to perceived price increase, I propose to shelve the implementation of Statutory Instrument 20 of 2017 –[HON. MEMBERS: Hear, hear.]- Which levies VAT on potatoes, rice, margarine, maheu and meat products.  This will allow for further consultation with relevant stakeholders and those consultations, I will start them with this august House.  I need the august House to give me guidance.  I must tax something to raise money to pay for service delivery, allowances, and wages.  So, we need to have guidance so that we understand and agree on which items to tax.  So, the consultations will start with this august House.  I thank you

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