BUY Zimbabwe, a campaign outfit that advocates for the consumption of domestic products, said this week the government's recent move to reintroduce import taxes on some basic commodities was a positive step that will improve the competitiveness of Zimbabwean goods.
This comes at a time when retailers have been crying over losing business to informal traders.
The move was meant to encourage customers to select locally produced goods, supporting employment growth and the national economy.
A charge levied on imported items is known as an import duty. It is typically expressed as a percentage of the value of imported goods, as well shipping costs. It can help local producers withstand foreign competition.
Alois Burutsa, general manager at Buy Zimbabwe, said local businesses' sales and profitability had decreased as due to lack of competitive pricing for local items.
“Buy Zimbabwe welcomes government's recent decision to reinstate import duties on basic commodities as a progressive development that will contribute to a fairer competitive landscape for domestically produced goods,” he said.
“We would like to highlight the potential of this move to incentivise consumers towards choosing locally-made products, thereby, bolstering the domestic economy and fostering job growth.
“The development will help increase capacity utilisation and deepen economies of scale, translating to lower prices on the domestic market,” Burutsa added.
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The informal sector sells cheaper goods as they incur less costs compared to big retailers, but they do not pay taxes to government.
“The reintroduction of import duties serves not only to stimulate the local economy but also levels the playing field for domestic products in comparison to their foreign counterparts,” Burutsa said.
“We need to acknowledge that numerous foreign products that were finding their way duty free into our wholesale and retail outlets benefit from rebates or subsidies in their home countries, providing them with an unfair advantage over locally manufactured goods.”
