Government announces new export incentives

by | May 11, 2021 | Business, International, Local News | 0 comments

Nevanji Munyaradzi Chiondegwa

In a huge push aimed at boosting exports in the country, Finance and Economic Development Minister Professor Mthuli Ncube increased exporters` foreign currency retention threshold from the current 60 percent to 80 percent in an incremental export incentive scheme.

The adjustments are part of deliberate policy making which is in the interest of economic growth.
Exporters operating in Special Economic Zones and those listed on the Victoria Falls Stock Exchange will retain 100 percent of their earnings.

The new measures are aimed at promoting economic growth through import substitution, domestication of existing value chains and grow export growth.

This will be achieved through innovative incentive and regulatory framework to drive up exports diversification and competitiveness.
Government has also come up with a raft of fiscal incentives measures which include tax holidays for newly established investment enterprises falling within a priority sector.

The tax holidays include duty free import of raw materials for good designated for export.
Export drawback scheme, inward processing rebate scheme are two other fiscal incentives.

Export market development expenditure shall become deductible during the year of assessment and the corporate tax has been lowered to 15 percent for all manufacturing companies with 51 percent exports.

Gold producers are also among the beneficiaries of the incremental export scheme with a new policy to recognise artisanal miners being worked out. All gold producers who produce gold above their monthly average qualify for the 80 percent retention.

This is hoped will increase gold deliveries to Fidelity Printers and Refineries.
Large scale gold miners who qualify for the 80 percent Incremental Export Scheme shall also be entitled to export the incremental portion of the gold to enable them to secure funding to increase production. All this is aimed at rejuvenating the gold sector.