The government has suspended duty on fertiliser imports by approved importers with immediate effect. This is meant to ensure adequate supplies for the 2024-2025 summer cropping season.
The announcement was made by Minister of Finance, Economic Development, and Investment Promotion, Mthuli Ncube, through Statutory Instrument 178 of 2024, published in the Government Gazette on November 8.
Under the new regulations, licensed and approved importers who bring in duty-free fertiliser but then sell it at the same or higher price than those who have paid duty will be required to pay the full duty, along with penalties.
Minister Ncube also stated that the list of reputable importers authorized to benefit from the duty suspension will be approved by the Minister of Lands, Agriculture, Fisheries, Water, and Rural Development, Anxious Masuka. Said Ncube:
<blockquote>
The Minister responsible for Agriculture shall approve a list of reputable fertiliser importers for the purposes of these regulations…
The Commissioner shall grant suspension of duty to an approved importer subject to compliance with section 34C of the Revenue Authority Act [Chapter 23:11].
The Commissioner shall not grant suspension of duty to an approved fertiliser importer where the importer does not have a licence issued by the Ministry responsible for Agriculture…
Any approved fertiliser importer who sells fertilisers for which duty would have been suspended at prices equal or higher than fertilisers on which duty is ordinarily payable shall be liable to pay the duty suspended and applicable penalties.
</blockquote>
Ncube also said that approved importers will be allowed to exhaust the ring-fenced allocations of 100,000 tonnes of urea and 150,000 tonnes of ammonium nitrate.
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The government is allowing some companies to import fertiliser without paying taxes to make sure there is enough for farmers next summer. The Minister of Finance made this announcement in a document called Statutory Instrument 178 of 2024. Companies who benefit from this rule but sell the fertiliser at a high price will have to pay the full tax later. The Minister of Agriculture will decide which companies can get this tax break. The companies can import a specific amount of fertiliser without taxes, but they have to follow the rules or face penalties.

Government Suspends Duty On Fertiliser Imports For Select Importers

The Government says traders and individuals are still free to import fertiliser and cement to guarantee availability and affordability.
In November, the Government allowed imports of fertiliser and cement by traders and individuals until the end of 2023 after the two critical commodities became scarce, pushing up prices.
Seasonal weather forecasts ahead of the 2023/24 summer cropping season indicated a high likelihood of normal to below-normal rainfall.
The country experienced hot and dry conditions in October and November, but most parts of the country have been receiving rain since mid-December, raising hopes that the season can still be salvaged.
The Permanent Secretary in the Ministry of Industry and Commerce Thomas Wushe said fertiliser imports will continue. He said (via <a href="https://www.sundaymail.co.zw/fertiliser-cement-imports-to-continue">The Sunday Mail</a>):
<blockquote>
We are not stopping fertiliser imports as the season looks much brighter than initially projected.
</blockquote>
Wushe also said cement imports will continue as the authorised amounts under previous permits have not been exhausted. He said:
<blockquote>
The permits haven’t been fully dispensed and imports are continuing.
The cement supply situation is improving and we will continue to monitor local production in consultation with the local cement companies.
</blockquote>
Before the Government allowed fertiliser and cement imports, prices had increased by as much as 100 per cent.
The price of cement had increased to around US$20 per 50kg bag, up from an average of US$9.
A 50kg bag of cement now costs around US$12.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

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