Published: 19 August 2013

The Zimbabwe National Chamber of Commerce (ZNCC) says the government should reintroduce export incentives and the scraping of surtax on some of the raw materials to improve industrial competitiveness.

The decision by the ZNCC comes at a time when industry has been less competitive on the regional and international market owing to taxes levied on some of the major raw materials used by the local manufacturing sector.

ZNCC deputy president Davison Norupiri said in most instances local firms pay 15 percent value added tax and at least 25 percent surtax on palm oil which is used for the manufacturing of soap and other products.

Mr Norupiri said the government should revisit some of the statutory instruments.

He refuted allegations of mismanagement of some of the firms saying the management styles are excellent and there is need for continued interaction between the business and the government for the crafting of sound economic policies.

The government introduced surtax on some of the basic commodities in 2008 to protect the local industry though it covers some of the raw materials used in the manufacturing sector which makes it difficult for industry to compete on the regional market hence the exportation of employment.

- zbc

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