Press Statement On 2024 Revenue Measures

PRESS STATEMENT
2024 REVENUE MEASURES ON ROUTE TO MARKET, VALUE ADDED TAX AND SUGAR
CONTENT ON BEVERAGES
Introduction
1. Treasury constituted a Technical Committee to receive input from Representative Members under the
umbrella body of the Confederation of Zimbabwe Industries.
2. The Committee undertook an impact analysis on the implementation of some of the measures
introduced through the 2024 Budget, in particular with regards to tax compliance on route to the
market, mitigation of consequences of the sugar on health through a special surtax, and a few tariff
lines that were omitted on exemption from Value Added Tax, in order to cover the whole value chain
that includes cotton and soya seeds to cooking oil.
3. Findings of the Committee have been presented; hence, Treasury advises on the following fine tuning
of the prevailing measures that are enshrined in the Finance Act and subsidiary legislation as follows:
Route to Market
4. Taking into consideration the need to preserve some of the pertinent arrangements for delivery of
goods into the market efficiently, the legislation will be fine-tuned as follows:
• Retailers can purchase from manufacturers as long as they have obtained a valid Tax
Clearance Certificate, and are VAT registered;
• Manufacturers are permitted to sell to institutions such as hotels, schools and other
corporates, provided such clients are registered for VAT and possess a valid Tax
Clearance Certificate;
• In order to protect the quality of goods and safety of consumers, perishable products that
include bread and milk products will be distributed by manufacturers directly to retailers;
• Concern was raised with regards to survival of the rural traders, since they are not
registered for tax purposes. These traders will however, continue to purchase their goods
from the wholesalers, hence there will not be any disruption of trade. Manufacturers will
also supply direct to small traders in the rural areas;
• Where the manufacturer distributes directly to customers who are not registered for VAT,
are not in possession of a valid VAT certificate and also not registered for Income Tax
purposes, a 5 percent Withholding Tax shall apply;
• Companies that serve online customers are allowed to continue to transact using this
method provided they are fiscalised so as to guarantee compliance to the Value Added
Tax; and
• In the interest of promoting an environment conducive for healthy and efficient tax
collection, local authorities are urged to issue vendors with licenses that are linked to the
place of business.
Special Surtax on Sugar Content
5. Cognisant of the need to build volumes, the Special Surtax on Sugar Content on specified
beverages has been adjusted to US$0.001 /gram and will be effective on the date of gazetting.
6. For the avoidance of doubt, the Special Surtax will apply on added sugar only.
7. In addition, given the possibility of substituting sugar with sweeteners, these will be deemed as sugar
for tax purposes.
8. As revealed through the consultation process, the increase in price of the beverage products should
be modest, hence the tax is not expected to disrupt the market.
Value Added Tax
9. In order to ensure consistency in the Cooking Oil value chain, cotton seed and soya beans and its
derivative products will be included in the VAT exemption schedule.
Basic Commodities
10. Treasury’s attention has been drawn to the impending increases in prices of the basic commodities,
as a result of the re-arrangement of the Value Added Tax system where some of the goods have
moved from zero rating to exemption, in line with regional practice and in the interests of revenue to
the Fiscus.
11. Basic food items that include bread, milk, cooking oil, mealie meal, salt, sugar, flour, are exempt from
Value Added Tax purposes, hence there should be no price increases.
12. Other basic commodities that include meat, rice, bath and laundry soap, washing powder, toothpaste
and petroleum jelly have been moved to standard rating, hence, price increases should be minimal.
Statement to the market on moratorium
13. A statement that purports to grant a moratorium by Government on the implementation of the Finance
Act, as well as subsidiary legislation obtained under Statutory Instruments 248 and 249 of 2023, has
been widely circulated.
14. The Legislation that is purported to have been granted a moratorium pertains to the route to the
market, VAT zero rating and exemption and special surtax on sugar.
15. For the avoidance of doubt, the Ministry of Finance, Economic Development and Investment
Promotion does not relay information through third parties, hence advices of the above steps that will
be taken as a consequence of the consultation process.
Conclusion
16. The Ministry of Finance, Economic Development and Investment Promotion wishes to take the
opportunity to thank stakeholders on the valued contribution to the above process.
Hon. Professor Mthuli Ncube

MINISTER OF FINANCE, ECONOMIC DEVELOPMENT AND INVESTMENT PROMOTION
8 JANUARY 2024
Website: www.zimtreasury.gov. +263 8688003450-3 @Zimtreasury
+263 719 567 091/+263 719 567 113 Zim Treasury

Press Statement On 2024 Revenue Measures

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Press Statement On 2024 Revenue Measures

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PRESS STATEMENT

Special Surtax on Sugar Content

Value Added Tax

Statement to the market on moratorium

Hon. Professor Mthuli Ncube

Website: www.zimtreasury.gov. +263 8688003450-3 @Zimtreasury

+263 719 567 091/+263 719 567 113 Zim Treasury

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