ZIMBABWE is bracing for price cuts on meat and poultry products following the recent policy directive scrapping Value Added Tax (VAT).
The latest developments were confirmed by the Finance Ministry’s permanent secretary, George Guvamatanga Tuesday during a plenary discussion.
The removal of VAT applies on beef, pork, and poultry products to enhance food accessibility and nutritional intake.
This follows backlash following the recently presented 2024 Midterm Budget and Economic Review Statement where Finance Minister Prof Mthuli Ncube moved to subject live animals and meat to standard rating.
The meat sector also blamed the directive for prompting reduced demand, further complicating an already depressed industry hardest hit by limited disposable income.
Commenting on the development, Zanu-PF communication director, Farai Marapira hailed the development as a step in the right direction.
“By lowering retail prices, these nutritious foods become more accessible, especially for lower-income families. Greater access to affordable meat can improve dietary habits and overall health, while increased demand for local meat products stimulates the agricultural sector and creates jobs.
“Additionally, this move helps combat malnutrition and food insecurity, providing a crucial resource for those in need. The reduction in prices may also boost consumption and sales in the meat market, promoting healthier food choices over less nutritious alternatives.
“Overall, this initiative demonstrates the government’s commitment to improving living standards and fosters a healthier population while supporting the local economy,” he said.
However, some market analysts are of the view that the gesture won’t do much to alleviate price burden as the market is likely to stick to higher prices in line with the country’s business culture of profiteering. — NewZimbabwe
