Government has suspended duty on Zesa equipment for one year, a development that is expected to significantly reduce the cost of power projects that are underway.
Finance and Economic Development Minister Patrick Chinamasa announced the scrapping of duty in the Government Gazette published last Friday through Statutory Instrument 113 of 2016.“The Customs and Excise (Suspension) Regulations, 2003, published in Statutory Instrument 257 of 2003 (hereinafter called “the principal Regulations”), are amended by the insertion of the following after Section 9K-
“9L. Suspension of duty on power equipment, critical spares and transformer components imported by Zesa Enterprises (ZENT), Zimbabwe Electricity Transmission and Distribution Company (ZETDC) and Zimbabwe Power Company (ZPC).
“Subject to this Section and to such conditions as the commissioner may fix, a suspension of duty shall (for a period of one year with effect from date of publication) be granted on power equipment, critical spares and on transformer components imported for ZESA Enterprises (ZENT, Zimbabwe Electricity Transmission and Distribution Company (ZETDC) and Zimbabwe Power Company (ZPC).”
Zesa chief executive officer Engineer Josh Chifamba welcomed the development saying it would go a long way in reducing cost on capital projects. “We welcome the development because it will reduce the cost of capital project as this means that duty is suspended on capital equipment,” said Eng Chifamba.
“This will also reduce the tariff to our clients since the duty component would have been waived. On the part of ZENT, it means that the company will make their products very competitive as there would be no duty on their raw materials.
“We are glad that Government has realised that this is a sector that needs investment. So by suspending duty, it means most of our capital projects would not be too expensive.” Eng Chifamba said a number of projects that the power utility embarked on would benefit from the development.
The Parliamentary Portfolio Committee on Mines and Energy last year recommended that Government enhances the Ease of Doing Business in the energy sector. herald