Until end of January 2017, products such as rice, fish, margarine, potatoes and meat were exempt from the 15% VAT. ZIMRA – Zimbabwe Revenue Authority released Statutory Instrument 20 of 2017 that essentially removed these products and others that were exempt from 15% VAT to now VAT taxable. The VAT regulations became active on February 1, 2017.
Retailers could simply pass on the added cost to the consumers meaning that these goods may see a sharp increase in prices. It will be interesting to keep an eye on how retailers adjust their pricing strategies in response to this legislation and the impact on grocery shopping habits of households that are already feeling the pinch from a cash-strapped economy.
ZIMRA released a copy of Statutory Instrument 20 of 2017 on their website for anyone to download. We have posted copies of the scanned documents below for our readers’ benefits. Have you noticed any change in prices? Tell us, i the comments below, how this legislation might affect your grocery shopping habits.
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