Millers demand repeal of unpublished SI imposing more tax on imported flour, maize
THE Grain Millers Association of Zimbabwe (GMAZ) has written to government demanding the immediate repeal of a Statutory Instrument (SI) that imposed further taxes on imported grain.
According to a letter from GMAZ to the Agricultural Ministry that were gleaned by this publication, the SI, if enforced, will result in inflationary pressures that could hike confectionery prices by up to 13%.
The price of a loaf of bread is anticipated to rise to US$1.15 while a 10kg bag of mealie meal will go for a minimum US$5.20.
GMAZ say the SI is illegal as it contravenes the Zimbabwean Constitution and the Agricultural Marketers Act (AMA).
“Our scientific computations, should the levies be applied, shows that the prices of the basic commodities will spike,” reads a letter from GMAZ.
“10kg Roller Meal will move from US$4.60 to circa US$5.20 (13% increase). 50kg of Bakers Flour will move from US$36.00 to US$41.00 (13.89% increase).
“Because of increase on bread flour, we anticipate bread price to increase to at least US$1.15 per loaf.
“Stock feeds will increase by 18%. Meat and Milk products to move up accordingly.”
The new levies, which were incorporated into SI87 of 2025 by the Agricultural Marketing Authority (AMA) impose charges of US$89.25 per metric ton of imported soft wheat and US$89.25 per metric ton of imported hard wheat.
They also impose US$40.00 per metric ton of imported maize, US$20.00 per metric ton of imported soya beans and US$35.00 per metric ton of soya meal.
Adds the letter: “We are astounded by the imposition of the levies as they will hit hard on consumer affordability of basic commodities which are essential for the sustenance of life.
“Your ministry is electing to impose new levies barely a fortnight after Cabinet announced they will be no new levies, and in fact, it has been lowering some of the levies and fees to ameliorate consumer spending.
“We find the SI87 of 2025 ultra vires the Constitution and the Agricultural Marketing Act.
“The Minister is limited to impose a levy on locally grown agricultural produce only.
“Therefore, the levy on imported agricultural is deemed to be a tax. The Minister has acted outside his province and consequently violates section 298 (2) of the Constitution.”
A loaf of bread goes for US$1 with 10kg bags of mealie meal trading just below US$5.
Past attempts to further tax bakers and millers have resulted in steep hikes of products that have become part of Zimbabwe’s staple diet.
“The Agricultural Marketing Act decrees that levies must be imposed after consultation with all key stakeholders, such as ourselves. The consultations were not done.
“We have no doubt that the Esteemed Office of the Attorney General concurs with us with respect to legality of this S.I.
“The levies are unprecedented as they were never imposed since 1890 or in recorded modern history.”
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المصدر: NewZimbabwe
