Treasury is set to renew a set of duty rebate packages for some productive sectors effective January 1 next year to consolidate gains by some strategic firms and stabilise prices for locally produced goods.
Those expected to benefit include clothing manufacturers, dairy sector, baking industry, poultry firms, motor industry, fertilizer firms, furniture companies, pharmaceutical entities, tourism and small to medium enterprises, among others, according to treasury data.
National Business Council of Zimbabwe President, Mr Langton Mabhanga noted that beneficiaries of the rebate facilities should instead focus on increasing output.
“Whoever stands to benefit should remember the need to focus on expanding to unlock more value in the economy,” he said.
An industrialist, Mr Shephard Kembo said while the structure of the facilities enable companies to import capital equipment or machinery without payment of customs duties and value added tax, the reduction of high costs is key to economic stability.
The support structure through a rebate of duty facility will result in government forgoing revenue worth millions of dollars, but the Minister of Finance, Professor Mthuli Ncube defended the move during the presentation of the 2019 national budget in November, saying it is necessary in order to expand, revive and restore export confidence in the economy.