Only 11 basic goods exempted from import duty and tax listed but business concerned

The government has scrapped import licences as well as duty and tax on 11 basic commodities but business is already concerned that the move will stall capacity utilisation which had risen to 63%.

The goods  exempted are maize meal, rice, salt, sugar, milk, cooking oil, toothpaste, flour, bathing soap, petroleum jelly and washing soap.

Supporters of the move say it will bring down prices as local business will be forced to reduce its prices if it is to sustain competition from imported goods.

Critics say the new measure will increase dollarisation which is not good for the economy and is likely to fuel the black market.

The re-introduction of the local currency is said to have boosted capacity utilisation in local industry with some reports saying 80% of the goods on shelves are locally made. 

The government said the new measures, which include the introduction of gold-backed tokens, are aimed at stabilising the local currency and the exchange rate.

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