HARARE- Zimbabwe’s Finance Minister, Mthuli Ncube, has announced that all alcoholic and non-alcoholic beverages, as well as basic commodities like refined sugar, detergents, and dairy products, will now be considered smuggled unless sellers can provide proof of customs duty payment.
Government claims this measure aims to tackle the growing influx of smuggled goods, which has been harming local industries by creating unfair competition and undercutting legitimate businesses.
The announcement was made by Joseph Mverecha, the ministry’s chief director of economic affairs, during a presentation on March 13 at the Zimbabwe Staff College in Harare. Ncube explained that while authorities have already launched a nationwide crackdown on smuggling, some counterfeit products are still being produced in local backyard industries. He also noted that the demand for smuggled goods is high due to their lower cost, as they bypass import duties and taxes.
Ncube said that despite these challenges, Zimbabwe is expected to see a 6% growth this year, driven by strong performance in agriculture, mining, and tourism. He further highlighted new measures aimed at improving tax compliance, including a 5% withholding tax for wholesalers and a reduced VAT registration threshold to encourage businesses to formalize their operations.
