Business Reporter
DEPUTY Finance Minister,Kudakwashe Mnangagwa says the government is working flat out to standardise prices for all government suppliers in a bid to curb any further revenue losses.
Experts believe the government has lost money running into billions of dollars through overpricing by government suppliers.The tendency has also been fingred as one of the causes of inflationary pressures which continue to shake the markets.
Addressing delegates at the Chamber of Mines conference in the resort town of Victoria Falls, Mnangagwa said plans were now at an advanced stage to call it a day for overpricing.
“The government is currently working on strengthening the Public Procurement Act and relevant regulations to curb unwarranted price distortions and speculative tendencies on the market.In this regard , the Government has set standardisation of prices of goods to be supplied to all government department,” he said.
He also shed more light on incentives available for the mining sector which include allowable deductions /expenditure on all capital expenditure on exploration , developmentand operations incurred wholly and exclusively for any mining operations is allowed in full.
For expenditure incurred during a year of assessment on particular mining activities , Mnangwagwa said the tax payer may elect to have the expenditure allowed in the year of assessment in which it is incurred or carried forward and allowed against income from mining operations in any subsequent year of assessment.
“In addition the Minister of Finance may after consultation with the Minister of Mines , also exempt the holder of a Special Mining Lease wholly or partly from non-residents shareholders tax,non-residents tax on fees , non residents tax on remittances, and non-resident tax on royalties.
“The government also provides VAT deferrement with a view to provide cash flow relief to companies ,in view of the huge capital outlays required in the importation of capital equipment,” he said.
He added this deferment which currently has a minimum threshold of US$500 000 is granted on capital equipment imported for a period of not exceeding 180 days , subject to the constitutions by the Commissioner General of the Zimbabwe Revenue Authority in terms of Section 12A of the VAT Act.
