Zimbabwe liberalizes grain imports, scraps VAT on rice, maize
ZIMBABWE – The government of Zimbabwe has liberalized the importation of grain at the household level as part of a raft of measures aimed at mitigating the effects of the El Nino-induced drought and guaranteeing national food security.
Dr Jenfan Muswere, the Minister for Information, Publicity and Broadcasting Services revealed this after attending a Cabinet meeting where food security was one of the major issues discussed.
According to the Minister, the new measures will take effect in July and will include duty waivers on importing rice, maize, potato seed, cooking oil and genetically modified maize for stock feed, whose milling and distribution will be strictly supervised.
Dr Muswere said the Cabinet also considered and adopted the report on the preliminary food security outlook, April 2024-March 2025, presented by the Minister of Lands, Agriculture, Fisheries, Water and Rural Development, Dr Anxious Masuka.
“Among other issues considered, Cabinet discussed the importance of considering more hectarage for growing rice given increased rice consumption by the citizens,” he said.
He added that the Cabinet also emphasised the need to support and promote local wheat production for direct consumption, for a swap with maize to meet maize demand for the nation.
“In light of the foregoing, Cabinet has approved the Food Security Outlook Report to March 2025 to facilitate winter cereals production planning and the food security strategy based on the comparative and competitive advantages of wheat this winter.
Dr Masuka said the food security outlook is made of four components which are: what is in stock, what is likely to be produced in the current season, what is likely to be produced in winter and what is likely to be imported.
Cabinet scraps VAT on rice, potato seed
Meanwhile, the cabinet approved the removal of Value Added Tax on rice and potato seed since there is now more consumption of rice and potatoes in the country, with these products being predominantly imports.
According to the minister, the scrapping of VAT on rice and potato seed will be welcomed by stakeholders, including consumers, as it is set to result in a reduction in retail prices.
Recently, millers approached Treasury to scrap the 15 percent VAT on rice, which they argued would increase 7% the price of rice on the market if left in place.
Grain Millers Association of Zimbabwe chairperson, Mr Tafadzwa Musarara, on the other hand, last week said the imposition of VAT would increase the costs of 2kg from US$2 to US$3 due to change complications, weighing heavily on consumers.
Genetically modified maize
Dr Masuka revealed that the cabinet deliberated that the private sector must continue to import maize for human consumption, we said if they wish to import genetically modified maize they can do so, but that must be under strict supervision.
According to him, Zimbabwe was one of the first countries in the Sadc region to put in place a GMO (genetically modified organism) policy in 1998 and formed the National Biotechnology Authority, adding that the country allows GMOs to be imported because we have a very strict framework.
“Perhaps because of the strictness, very few private companies have come on board to do some experiments on GMOs.
In addition, he announced the purchase of local grain at the import parity price of US$390 per tonne was recommended to mop up excess local grain.
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