MDC-T MP says Chinamasa is the only minister who does not have ZANU-PF DNA

THE TEMPORARY SPEAKER (HON. MARUMAHOKO): Order, order, Hon. Vice President of the MDC, what I have said here was clarification not the debate but seeking clarification to what the Minister had said.

HON. ENG. MUDZURI: The Minister said if he can get other means of getting revenue and I am just saying the best means…..

THE TEMPORARY SPEAKER: He said he was going to consult everyone, including this House.  He did not mean now.

HON. ENG. MUDZURI: My final clarification is on meat and beef which type of beef or meat are we going to have concessions because there is tinned beef, raw beef and game meat.

HON. NDUNA: Thank you Mr. Speaker.  I believe on the day he proposed that there be 15% to be added onto meat products, in particular because I am an owner of an abattoir, it happened immediately.  Today,  he has given this Ministerial Statement, it is my clarion call that this also happens immediately in terms of repealing that 15% VAT by retailers.  Over and above that Hon. Minister, you have mentioned on issues to do with clutches and wheelchairs for people living with disabilities, it is also my clarion call that you also add on the zero rating those that were not there before, in particular Braille, equipment and some other model of clutches for people living with disabilities aware and cognisant of the fact that the budget increase did not occur for these people who are marginalised because of disabilities.

 *HON. A. MNANGAGWA: Thank you Mr. Speaker.  I thank the Minister of Finance and Economic Development for removing such taxes.  We were failing to provide for our children and some children were now under nourished because we could not afford to buy nutritional foods.  I thank you.

THE MINISTER OF FINANCE AND ECONOMIC DEVELOPMENT (HON. CHINAMASA) Thank you very much for the contributions and for the clarifications sought.  Hon. Sibanda, if the Statutory Instrument imposed VAT on fish and carpenter is fish, I am shelving it as per my statement.  Hon. Mudzuri, thank you very much, this covers all types of beef.  I cannot say off hand whether tinned beef is part of that.  I doubt it, I think tinned beef should be different but all we are looking at is what did the instrument cover.  Anything that was covered which was to take effect from 1st February, 2017 will now be shelved.

Hon. Nduna, I think I have to explain this VAT.  As you know, VAT is a transactional tax.  It is charged at every level of value addition.  In other words, if we take the example of a manufacturer, when the manufacturer sells to the wholesaler, he charges VAT.  When the wholesaler sells to the retailer, the wholesaler charges VAT and when the retailer sells to the consumer, he charges VAT.  This is why VAT is now the largest source of our revenue in terms of support to the budget revenues.  It accounts for a very huge contribution to our revenue collection.  Seconded, I think by Pay As you Earn.  So, when we are looking for how to raise money, we are basically identifying those areas where there is a lot of economic activity.

A supermarket will fix its price, in the prices they do not include tax.  You only know the tax when you get to the till.  So, this issue about prices being increased, it is not seen in the shops but when you get to the till because of the VAT.  If a retailer includes a VAT tax in the price, you can be sure that money is not coming to ZIMRA.  It is getting into the coffers of the supermarket and that is not desirable.

I want to thank all of you who have contributed.  Hon. Mnangagwa, kwashiorkor had not come yet.  It was only introduced on 1st February, 2017 and I think if you have not been buying meat, you cannot blame the tax.  Mr. Speaker Sir, I thank Hon. Members and I hope that I have done justice to the clarification sought.

(197 VIEWS)