TABBY MOYO, Windhoek | Monday 5.15pm.
VALUE Added Tax (VAT) on payments on goods imported into South Africa from its partners in the Southern African Customs Union (Sacu) — Namibia, Botswana, Lesotho and Swaziland — was launched on Monday.
Late last year South Africa, in an effort to stem the billions of rands worth of annual loss of revenue due to tax evasion, introduced a VAT export incentive scheme on exported goods.
South Africa postponed VAT payments by its partners in the Sacu several times because Namibia, Botswana, Lesotho and Swaziland complained of problems due to a lack of information on the new system.
Namibian and other Sacu businesses have expressed concern that South Africa’s insistence that they pay VAT would negatively impact upon cross-border trade within the customs union.
It was proposed initially that VAT payments be implemented in stages starting with Namibia and Botswana. However, this plan was shelved last month. With the new arrangement, the refund to a foreign purchaser will now be made at the point of export to ensure that the goods have indeed left South Africa. — The Namibian
BUSINESS BRIEFS
CHINA FM TO AFRICA
CHINESE Foreign Minister Tang Jiaxuan on Monday left on a five-nation African tour in which he will visit Egypt, Kenya, Uganda, Tanzania and Zimbabwe. It is Tang’s second African mission after calling on five West African nations in June soon after his appointment. Tang said the visit will give “new impetus” to the development of Sino-African relations and bilateral co-operation, which was worth around $5-billion in the first 11 months of last year.
RAIN THREATENS ZIM MAIZE
ZIMBABWE’S maize crop may suffer from leaching if the current heavy rains persist, an industry commentator said. Agritex’s Lovemore Kahari said that heavy-soil crops are not in danger. Zimbabwe has been experiencing persistent heavy rains since the onset of the rainy season last October.
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