The government of Zimbabwe through the Ministry of Finance, Economic Development and Investment Promotion has exempted a basket of basic commodities from VAT.
The basic commodities that were exempted include bread, milk, cooking oil and maize meal.
The exemption is with effect from 01 February 2024.
Last year while presenting the 2024 budget Minister Mthuli Ncube removed the basic commodities from VAT exemption.
Industry and the nation engaged government on the issue resulting in government acceding to the concerns raised.
The second republic always listens to stakeholders..The reintroduction of the exemption is a case in point.
The exemption is a relief to the populace as businesses had already hiked prices.
Prices must drop in response to the latest development.
Other industrialists reduced prices the moment the exemption was given effect through the government gazette.
Bakers Inn, a subsidiary of Simbisa Brands, on Wednesday said with immediate effect it has reduced the cost of bread from US$1.10 to US$1.