Furniture makers get duty rebate on imports
THE Government has introduced duty rebate on goods imported by furniture manufacturing companies, aiming to boost capacity utilisation, attract new investment and increase employment levels.
The regulations, contained in Statutory Instrument 187 of 2024, state that only approved manufacturers are eligible to apply for the furniture manufacturers’ rebate.
To be eligible for registration, applicants must be registered with the Zimbabwe Revenue Authority (ZIMRA) and have a valid tax clearance certificate, according to the regulations.
On receipt of an application, the applicant’s premises and machinery will be inspected before the application is referred to ZIMRA for consideration.
The findings of the inspection will be submitted to ZIMRA and will form the basis of the consideration of the application.
Once the applicant has complied with the requirements, ZIMRA will register the applicant. If the registration of an applicant is approved after June 30 in any year, the fee payable will be half. The prescribed fee for renewal of manufacturer registration must be paid annually on or before January 31.
ZIMRA may reject an application for registration if it believes that adequate control of goods imported or taken out of bond under rebate of duty cannot be maintained and if any provision of these regulations will not be complied with.
A manufacturer must present an annual report to the Minister of Finance, Economic Development, and Investment Promotions, in a form approved by the minister, detailing the benefits achieved from using the rebate facility granted under these regulations.
The report should be presented in a way that clearly demonstrates the impact of the rebate on the manufacturer’s business, including, incremental employment levels achieved, capacity utilisation levels attained, value of new investment received, growth in the manufacturer’s output and research and development initiatives undertaken.
If a manufacturer fails to submit the annual report in the specified format, the rebate will be immediately withdrawn.
Any rebated goods received during the period will be considered used for a purpose other than that for which the rebate was granted. The manufacturer will be required to repay the rebated revenue and pay a penalty for failing to maintain records.
The annual report must be submitted within 30 days of the end of the 12-month period.-herald
