According to Statutory Instrument 15 of 2024, the goods and
services covered under the new dispensation include water for domestic use,
local authority rates, domestic electricity, some agricultural equipment and
machinery, and sanitary wear.
Also exempted are some fuel and fuel products, ethanol
fuel, road toll fees, tobacco, commission charges on tobacco sales, goods and
services supplied by medical statutory bodies and secondary services by the
National Pharmaceutical Company.
VAT is an indirect tax on consumption charged on the supply
of taxable goods and services.
It is levied on transactions rather than directly on income
or profit.
The tax is also levied on the importation of goods and
services.
In Zimbabwe, VAT was introduced in 2004 to replace the
former sales tax regime.
The Second Republic is presently working on measures to
stabilise prices of goods and services.
Addressing the first Cabinet sitting of the year at State
House in Harare on Tuesday, President Mnangagwa said the Government is
implementing prudent fiscal and monetary policy measures.
“Prudent fiscal and monetary policies and the promotion of
a conducive business environment remain critically important for the stability
and growth of our economy,” he said.
“Accordingly, the fiscal and monetary authorities are
implementing a raft of policy measures to arrest price increases, stabilise the
foreign exchange rate, maintain the value of our currency and ultimately
encourage savings.” Sunday Mail
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