SA firms stop Zim exports after new tax laws

Harare - New tax measures implemented by the Zimbabwean government are likely to have a negative impact on South African-based companies that have dominated the Zimbabwean market in recent times.

Presenting his mid-term review statement last week, Finance Minister Patrick Chinamasa introduced a raft of measures including new duty structures on cooking oil, poultry, soap and dairy produce, among other items.

The move, meant to protect Zimbabwean companies, has already seen some South African companies cease exports to Zimbabwe.

The South African maker of washing powder MAQ, Bliss Brands, has already decided to stop exports to Zimbabwe after the introduction of a surtax of 40%.

Jacqueline Jacobs, marketing director for Bliss Brands, reportedly said her company has been exporting to Zimbabwe for at least eight years but will have to stop after the initial tax of 10% was suddenly increased to 40%.

According to the Zimbabwe Mail, Jacobs said the company had been exporting at least 200 tonnes per month to Zimbabwe, and had been growing in the market up to now.