Govt Bans Second Hand Underwear Imports
31 July 2015
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FOLLOWING a demonstration by MDC legislator Priscilla Mushonga on Zimbabwe’s importing of second hand underwear, Finance Minister Patrick Chinamasa has announced a 10 percent increase in import duty on second hand vehicles and a ban on the importation of second hand clothes.
Presenting the Mid-Term Fiscal Review in Parliament, Chinamasa increased surtax on imported second hand vehicles of five years and older to 35 percent from 25 percent in a bid to protect local car assemblers and contain the growing import bill.
Chinamasa announced a cocktail of measures to protect local industry which include a ban on second hand clothes and the scrapping of rebate on imported basic goods that can be produced locally from August 1. He said the economy continued to be weighed down by a ballooning import bill, with exports remaining constrained.
Imports for the six months to June this year stood at $3,1 billion from $3 billion recorded in the corresponding period last year, he said, adding that imports are expected to grow by six percent this year.
BUDGET HIGHLIGHTS
›› Economic growth revised downwards to 1,5 percent
›› Government to reduce wage bill from 80 percent to 40 percent of total budget.
›› Duty on second hand vehicles increased.
›› Groceries such as maize-meal, meat, sugar and flour to be removed from Traveller’s Rebate
›› Importation of second hand clothing and shoes banned
›› Agriculture output projected to decline by 8,2 percent in 2015.
›› $3 million facility for SMEs
›› $5 million seed money for Women’s Bank.
›› Revenue target reduced to $3,6 billion from $3,99 billion
›› World Bank to fund audits of Public Enterprises.
›› Blankets to be removed from the Open General Import Licence for two years.
›› Exports projected to decline by 5 percent
Exports account for 50 percent of the country’s liquidity, he said.
A marginal 0,4 percent growth was seen in exports receipts for the six months to June this
year amounting to $1,3 billion compared to $1,22 billion recorded in the corresponding period last year.
With Zimbabwe’s car manufacturing sector virtually non-existent, thousands of Zimbabweans have resorted to second hand car imports from Japan and Britain, driving up the import bill.
The importation of second hand clothes and shoes will be banned with effect from September 1 this year. Goods will be subject to seizure and destruction.
Zimbabwe’s textile and leather industries have, since dollarisation, been under siege from the influx of imports, especially finished second hand clothes, shoes and leather products that forced some of them to close down.
The new measures also form part of extensive measures the government is taking to grow the economy, with the economic growth rate revised down from 3,2 percent to 1,5 percent due to a poor agricultural season.
The slower growth is also expected to impact government revenues, which have since been revised downwards to $3,6 billion from $3,99 billion after first half collections missed the target by 6 percent.
Minister Chinamasa said apart from the negative impact of second hand imports of shoes and clothes on industrial recovery, these products posed a health hazard, as they were not subjected to fumigation.
He said despite the customs duty rates of $5 per kg on clothing and 40 percent plus $1 per pair of shoes to reduce competition for local industry, the products had continued to flood the market.
“I, therefore, propose to remove secondhand clothing and shoes from the Open General Import Licence.,” he said.
“Furthermore, any future importation of second hand clothing and shoes will be liable to forfeiture and destruction. Over and above this, the emergence of vending of cheap, low quality and smuggled imports is further choking both our producers and retailers, in addition to limiting inflows into the fiscus”.
The sale of second hand shoes and clothes had become so rampant along virtually all streets of the country’s major cities, towns and business centres, as most of the products were evading paying duty.
The used products were sold everywhere including in front of formal retail shops, which negatively impacted on established businesses that pay rentals and taxes to the government.
Prior to the proliferation of secondhand shoes and clothes, this form of trade was confined to officially designated places such as Mupedzanhamo in Mbare and Nkulumane in Bulawayo.
The minister also removed from the travellers rebate such grocery items as mealie-meal, meat, sugar and flour.
“Customs duty is levied on selected groceries that include flour, mealie-meal, bath and laundry soap, washing powder, toothpaste and petroleum jelly, among others.
“Cross-border travellers continue to import groceries duty free under rebate. However, there is no justification for continued rampant importation, since locally manufactured products are readily available,” he said. World Bank to fund audits of Public Enterprises.

4 Replies to “Govt Bans Second Hand Underwear Imports”

  1. In other words, you have a lack of imagination.
    To stop the imagination torture, go to a flea market and watch people buying. if you do not know lack, I wonder which Zimbabwe you are living in. Even the minister who lives a life of plenty, knows that people are buying second hands.

  2. Life is tough so people resorted to buying used underwear than to go bare underneath. So those who cannot imagine mugere so nyararai zvanga zvichitofamba so nema used underwear saka muchatipavo matsva here?

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