Cost of living marginally up

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The Zimbabwe Revenue Authority says its $3.8 bln revenue target for 2017 will not be negatively affected by the suspension of backdated Value Added Tax on meals for non-resident tourists, an official has said. Finance and Economic Development Minister Patrick Chinamasa last week gave hoteliers relief on the $3 mln worth of back-dated Value Added Tax on meals charged on tourism packages for non-resident tourists, as a way of promoting the viability of the tourism sector. Zimra audited clients and found that most non-resident tourists pay accommodation and meals as a package, which hoteliers did not separate in accordance with the law. It was discovered that some of the operators had not charged VAT on meals due to misinterpretation of the law, which zero-rated accommodation for foreign tourists. The reprieve – in the form of zero-rating of meals, which were part of tourism packages for the period 2009 to 2015, took into consideration that it was difficult for hoteliers to recover the outstanding VAT from the foreign tourists who have since left the country, which hoteliers were supposed to charge in accordance with the law. – The Herald, 8 August 2017

World Bank representative in Zimbabwe, Johannes Herdeschee has said while the country faced a myriad of problems, fiscal deficits, which have ballooned to 10% of gross domestic product, were the biggest threat to macro-economic stability. Herdeschee said this while presenting at a public seminar titled Breaking New Grounds in Agricultural Financing in Zimbabwe: The Use of Alternative Collateral and Risk Sharing Mechanisms in the capital on Friday. The World Bank representative said Zimbabwe should bite the bullet and implement austerity measures to improve macro-economic conditions. – NewsDay, 8 August 2017

Finance minister Patrick Chinamasa says the increasing housing development in the country’s towns and cities without corresponding industrial development was a cause for concern, as it would present a huge unemployment problem. Chinamasa, who was speaking at the Local Government Investment conference yesterday, challenged delegates to show him any town which was experiencing industrial development. Chinamasa pointed out that there was need to have equilibrium between housing development and industrial development if local authorities were to attract investment.  – NewsDay, 8 August 2017

At least 5 regulatory authorities have started implementing some of the reforms recommended under the rapid results initiative (RRI) for the ease of doing export business. A ZimTrade monthly report said the government and regulatory authorities have confirmed that they have started implementing some of the reforms. The reforms that relevant authorities have agreed to implement are on reducing the waiting period for export permits to a maximum of two days, the removal of the $50 registration fee for exporters and importers with effect from June 12, 2017 suspension of outstanding debts on the Standard Development Fund (SDF), to financially strained companies, on a case by case basis. The Zimbabwe Revenue Authority (Zimra) are to reduce the waiting period for bill of entry cancellation to a maximum of seven days and reduce the time for companies to register under trade agreements to a maximum of seven days for applications that do not involve inspection of the manufacturing process – NewsDay, 8 August 2017

The cost of living for an average Zimbabwean family has marginally increased after a hike in the price of basic commodities, a monthly price review by the Consumer Council of Zimbabwe shows. According to the July review, the cost of living for a low income urban earner increased by 0.2% while the food basket increased by 1%. The cost of living as measured by the CCZ’s low income urban earner monthly basket for a family of 6 increased to $576,84 at the end of July from $575,71 end of June. The food basket increased by $1,31 to $130,86 from $129,55. – Daily News, 8 August 2017

By |August 8th, 2017|Categories: Headlines|

About the Author:

Kudzanai Sharara
Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.