Cleaners demand duty exemption

COMPANIES in the cleaning sector say they want a duty free regime similar to the one extended to the tourism sector when importing equipment for use.

In terms of the Customs and Excise Tourism Rebate Regulations 2013 published in Statutory Instrument 173 of 2013, new capital equipment for expansion, modernisation and renovations of hotels and restaurants, boat equipment and other goods for the exclusive use in the tourism business by the tourism operator may enter the country duty free and Value Added Tax free.

Cleaning companies say they want to be exempted as well when they import their equipment such as polishers, scrubbers and vacuum cleaners, among others, which are not manufactured in the country.

In an interview, Surdax Investments (Pvt) Limited managing director Roselyn Musarurwa-Charehwa, said the duty regime has helped change fortunes for the country’s tourism sector but added that not extending the same to her sector will be unfair as they also import capital equipment which also creates employment.

“It’s double trouble for us; first there is the cash crisis where no one, including your own banks will give you an overdraft, while companies take long to pay for services,” she said.

“And then there is the issue where we are being charged high import fees when importing capital equipment which is not even manufactured locally.

“It’s a vicious cycle because this equipment is actually helping in employment creation, so I think it’s high time the relevant authorities consider duty exemption for us as well.”

The issue of duty exemption has generated heated debate and controversy in the country, with people expressing mixed feelings over it.

Former finance minister Tendai Biti once cancelled the duty window in his 2010 Mid-Term Fiscal Policy Review Statement citing abuse of the facility by some operators whom he said were importing vehicles for personal use and not tourism purposes.

The move sparked outcry from maverick businessman Phillip Chiyangwa who viewed it as a personal attack on his business empire.

The duty window had been created to help the tourism sector spruce its image ahead of the first Fifa World Cup tournament on African soil hosted by South Africa in 2010.

We need partners: Parirenyatwa

HEALTH and Child Care minister David Parirenyatwa says Zimbabwe badly needs the support of partners to improve the health sector.

Speaking during the USAID/Maternal and Child Health Integrated Program (MCHIP) success celebration and commitment renewing meeting, Parirenyatwa said partners were very important but should recognise established leadership in the country.

“We do need partners and stakeholders in the health sector and I am happy that we have a myriad of them who are assisting us,” said Parirenyatwa.

“We certainly cannot do it alone and we recognise that as a country, but you need to also accept our leadership.

“Health and quality life is not the sole mandate of the health sector as we are impacted by a lot of other things like water and even roads.

“For example, if there are no good roads that will enable ambulances to go and carry pregnant women, it’s a road issue that also becomes a health issue.”

Globally, MCHIP is the USAID global flagship which focuses on reducing maternal, newborn and child mortality in 30 countries, contributing to Millennium Development Goals 4 and 5.

It’s goal is to increase access to high-quality Maternal Newborn and Child Health (MNCH) services and strengthen health services in Zimbabwe by supporting the Health ministry and contributing to the scaling up and rollout of evidence-based, high-impact interventions that will reduce maternal, newborn and child morbidity and mortality and malnutrition and support progress towards the attainment of MDGs 4 and 5.

US Ambassador to Zimbabwe Bruce Wharton said his country was giving MCHIP US$15 million for the next three years to help Zimbabwe make progress in health issues.

Ambassador Wharton said it was unacceptable for children to die of preventable diseases and hunger.

“The US is committing US$15 million to MCHIP for the next three years so that they can expand to other five districts in Manicaland.

“No child should die from preventable diseases; no mother should die while giving birth and no person should die of hunger.” 

‘Solve 99 year leases issue’

GOVERNMENT has been urged to quickly resolve the issue surrounding the 99-year leases to make them bankable so that resettled tobacco farmers can easily access funding from banks.

Resettled farmers are unable to fully utilise their land owing to a cocktail of challenges, including a lack of critical resources such as seed, fertilisers and funding.

Even though government issued 99-year leases, farmers can’t use them as collateral as banks say they are unbankable.

Seasoned market watchers Tetrad Securities said solving the issue of leases will go a long way in helping small farmers, especially in tobacco farming, to access funding to buy seeds and fertilisers on time.

“For starters, there is need for the government to assist farmers, especially small-scale farmers who now command the largest percentage, in accessing funding.

“Funding is necessary so that farmers prepare in time and purchase the required chemicals required during the whole process.

“The reason why this is now critical is that there isn’t much scope or benefits to be realised from increasing hectarage but rather enhancing the quality of the leaf (tobacco).

“Thus there is need for funding to be provided so that more resources will be channelled within the land under hectarage.

“This also means that the issue of 99 year leases needs to be solved so that farmers access funding from banking institutions,” Tetrad said.

Zimbabwe’s yields have been drastically falling due to a range of factors.

Currently, about 2 million people require food aid.

Tetrad added that for the country to remain a dominant force in the global tobacco industry its ability lies in improving yields which would require training in the tobacco sector to enhance quality and improve yields which have been low despite the increase in hectarage.

Tobacco decentralisation applauded

MARKET watchers have applauded the Tobacco Industry and Marketing Board (TIMB) for decentralising tobacco auctioning saying the move was a step in the right direction.

Decentralisation comes at a time when more farmers were opting to grow highly rewarding golden leaf resulting in the number of registered tobacco farmers swelling to 91 278 from 70 904 in the previous season.

Zimbabwe is this year expected to produce 170 000 tonnes of tobacco from about 90 000 hectares planted at a yield of 1.88 tonnes per hectare.

In previous selling seasons, farmers were required to transport their produce to Harare where they would spend many nights and days at auction floors.

Tetrad Securities in its weekly market watch ending February 14, 2014 said the decentralisation will help bring buyers closer to farmers.

“During the week under review, TIMB, for the umpteenth time, issued a reminder to the effect that the 2013/14 marketing season will open on the 19th of February 2014.

“Three auction floors were licensed to handle auction sales and these are; Tobacco Sales Floor (TSF), Boka Tobacco Auction

Floors (BTAF) and Premier Tobacco Auction Floors (PTAF).

“In addition, Mashonaland Tobacco Company will handle contracted crop sales through its floors which are located in Harare, Rusape, Mvurwi and Karoi.

“The move by TIMB to slowly decentralise contract sales is a step in the right direction.

“This is so because the sellers will be brought closer to the buyers compared to a scenario where all sales are done in Harare.

“This enhances the quality of the crop compared to a scenario where farmers have to bring the crop to Harare from as far as Karoi,” said Tetrad.

Tobacco last year grossed around US$616.1 million and expectations are high this season that the figure will rise due to massive interest to grow the crop among farmers.

Harare disappoints EMA

 

THE Environmental Management Agency (EMA) says city councils, especially the City of Harare, are not doing enough to manage solid waste.

Statistics show that of all the 57 orders issued by EMA in 2013, 43 of them were issued to Harare City council.

Orders are legally binding documents ordering a city council to clear rubbish in undesignated areas.

Despite the 43 orders, a media tour organised by EMA around Harare’s high density suburbs especially Budiriro and Highfield 3, exposed heaps of rubbish dating back to June 2013 that remain uncollected.

Vendors at Tichagarika Shopping Centre in Highfield 3 said city officials have told them on countless occasions that they have no fuel to collect the accumulating rubbish. 

The media recently exposed the hefty salaries earned by high ranking Harare City Council officials at the expense of service delivery, which has nose dived since the introduction of multiple currencies in February 2009.

Harare City Council is on record saying they have no money and equipment to effectively clear rubbish and provide adequate water to residents alleging non-payment of rates.

EMA’s environmental education and publicity manager Steady Kangata told the media during the tour that Harare and other city councils have let his organisation down by failing to effectively deal with rubbish.

“…in city centres there is no proper solid waste management and in residential areas. We are exposing people to diseases caused by rubbish.

“But our biggest challenge and let down are local authorities; imagine that people at times put litter in bins and they get filled but no one gets to empty them timeously.

“Harare has failed to sustain clearing of rubbish despite the Orders we issued to them. What is happening is that they clear one spot and as they move to other spots, heaps of rubbish start to accumulate where they would have cleared because they take long to do it.

“The situation is not exclusive to Harare but even other cities are failing,” said Kangata.

He also took a swipe at litter bugs especially those that throw litter from their vehicles saying they risk being arrested.

He added that his organisation is working with the Zimbabwe Republic Police and Harare Municipal Police to bring litter bugs to book.

Last year, the agency said about 703 litter bugs was arrested and of that number 203 were people who throw litter from their vehicles, especially those with posh vehicles while 500 were pedestrians.