Government has removed import duty and excise tax on solar lamps, sanitary pads and tyre retreads.
Finance Minister Sosten Gwengwe announced the changes on Friday 18 February 2022 during the presentation of the 2022/23 budget.
He said government has removed import duty and excise tax on solar lamps and solar fridges to continue supporting the use of alternative sources of energy.
He said the move also seeks to assist rural masses that are off the national grid.
Gwengwe said government has removed import duty and excise tax on sanitary pads as one way of supporting general feminine hygiene
“In the spirit of promoting girl child education, Government has listened to the contributions that came from various stakeholders and has consequently removed duty and excise tax on sanitary pads,” he announced.
Furthermore, the Finance Minister announced the removal of import duty and excise tax on interchangeable tyre retreads used for the manufacturing of tyres.
He said the move is aimed at supporting the growth of the transport sector and the tyre manufacturing industry.
Gwengwe also announced the removal of import duty, excise and VAT on spare parts for use in energy generation and distribution.
The Finance Minister also announced the reduction of the minimum value addition requirement under the Industrial Rebate Scheme to support and promote local industries and to get cooperatives on the scheme.
He said the reduction in the local content requirement is aimed at making it easier for local manufacturers to enter into the Industrial Rebate Scheme where import duty and excise tax, and in some instances VAT, is not paid on raw materials.
He said Government has introduced four categories under the Industrial Rebate Scheme and each category has a minimum value addition requirement ranging from 5 percent to 35 percent.
Other Customs and Excise amendments are as follows;
These Customs & Excise tax measures became effective at midnight on 18 February 2022
BY WADZA OTOMANI