Govt re-affirms commitment to strengthening Zim Dollar

By Davison Vandira

THE Government has re-affirmed its commitment to strengthening the Zimbabwe Dollar after announcing measures to enhance the use of the local currency in its economic growth drive.

In a public advisory note this Friday, Treasury announced that all duties and taxes on imports and mining royalties among other things will now be payable in Zimbabwe Dollars up to a limit of 50 percent.

All domestic taxes for exporters will be paid in both the local and foreign currency using the approved retention thresholds.

The move has been necessitated by the government’s commitment to supporting the local currency and the need to curb illicit economic activities that are undermining the formal use of the Zimbabwe dollar.

Top among the illicit transactions is the illegal trading of foreign currency on the parallel market compounded by the indexing of prices in forex.

Treasury revealed that its main objective is to decisively deal with price instability instigators to bring enhanced macroeconomic stability for the benefit of every Zimbabwean.

Since the advent of the second republic, the economic space has benefited from fiscal consolidation that resulted in the government living within its means thereby eliminating the twin evils, budget and current account deficits.

It is against these achievements that the government re-introduced the Zimbabwe dollar to restore domestic and export competitiveness as well as the notable import substitution mechanisms that have resulted in 60 percent of retail shelves being locally produced goods.

The post Govt re-affirms commitment to strengthening Zim Dollar appeared first on ZBC NEWS.

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