Call for Zimra to curb smuggling of goods

There is need for the Zimbabwe Revenue Authority (ZIMRA) to strengthen measures to combat smuggling of imported goods into the country as this has the potential to reverse the reindustrialisation of the country, the National Competitiveness Commission (NCC) said in its recent report on the recent price increases.

It said the country’s revenue collector should also undertake post-clearance audits to ensure foreign goods sold on the local market properly follow customs procedures.

According to the survey, the products that are likely to be smuggled into the country include washing powder and toothpaste, bath soaps, and milk powder. These products are among 11 commodities the Government recently exempted to pay duty.

However, local basic commodities are generally more readily available locally compared to foreign products.

Mealie meal availability has been sustained by good harvests in 2021, where Zimbabwe surpassed its annual maize requirement of about 2.2 million tonnes by producing 2,8 million tonnes. Wheat yield for 2022 was also high at about 375 000 tonnes, which is adequate in meeting national flour requirements of about 300 000 tonnes per annum. Regarding milk production, the country does not have adequate milk supply to meet local demand for fresh milk, as well as for value addition into various products.

The dairy processors source milk from dairy farmers and imports milk powders that will be reconstituted to produce fresh milk due to inadequate supply of raw milk.

This also motivates for high milk powder substitutes products that are competing with our locally manufactured products in the form of soyamilk powder.

However, some of products such as rice and salt, are not locally produced in Zimbabwe but come into Zimbabwe in bulk quantities for local packaging and distribution.

Despite the foreign basic commodities being subjected to various import regulations, such as import licenses, tariffs, and logistical issues such as transportation costs and currency exchange rates, they still occupy some shelf space in local retail shops.

“With the removal of import licenses and duties, their occupancy shelve space stands to increase in the informal sector. This may have negative repercussions for local manufacturers, which will face stiff competition from foreign products,” said NCC.-ebusinessweekly