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Zimbabwean government to introduce tax on vegetables

Staff writer |
The Zimbabwean government plans to impose tax on vegetables, mineral water and fruits, among other produce, starting February 1, 2016.

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Financially hardpressed, President Robert Mugabe's government, has introduced the Value Added Tax (Vat) on imported vegetables.

Some of the vegetables now liable for taxation include cucumbers, carrots, mushrooms, garlic, lettuce, cabbages, cauliflower, rape, kali, pumpkins and squash.

Finance Minister Patrick Chinamasa said he made the taxation of vegetables and other named commodities in terms of Section 78 of the Valued Added Tax Chapter 23:12.

Some analysts claim the increase of the taxation base, apart from being aimed at widening government’s catchment area, is also intended to protect he local industry, particularly the mainstay agricultural sector.

Players in the troubled sector blame some of their woes on the influx of fresh farm produce mostly from neighbouring South Africa which are commonly traded cheaply at Harare’s popular vegetable market, Mbare Musika.

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