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.