The government has identified eight strategic sectors of the economy that will benefit from a duty free regime on imported raw materials with effect from next year.
The dairy industry, baking industry, poultry companies, motor assembly plants, wine manufacturing firms, fertiliser producing companies, furniture producers and pharmaceutical companies are the beneficiaries of the relaxed duty structures on imported raw materials.
Tax expert Mr Eliphas Moyo says the relaxation of the duty free structures on imported raw materials will also facilitate their revival, create jobs, facilitate expansion and solve shortages of essential commodities.
“There is need to ensure that the strategic sectors of the economy can benefit,” said Mr Moyo.
Another tax expert Mr Marvellous Tapera noted while the government has extended the structures to productive sectors, focus should be on the beneficiaries’ ability to expand.
“It is just about what can be done to unlock production and necessitate the need to boost output,” Mr Tapera said.
Zimbabwe has been facing challenges in terms of milk production, while bakeries have not been spared from high import costs, with the poultry sector still importing fertilised eggs to restore production after output took a heavy knock due to avian flu.
Furthermore, the fertiliser producing firms have not been spared from the huge costs of importing raw materials.
Manufacturers of drugs have also decried the expensive imported components as contributing to the shortages of medicine.