Zimbabwe’s rice millers want the government to halt a plan to impose a 15 percent tax on rice imports, which along with corn is the southern African nation’s staple food. Finance Minister Patrick Chinamasa had proposed to bring back value-added tax on the rice, which was removed in 2009, in his budget presentation last month. “A reintroduction of value-added tax will immediately trigger” a price increase of “at least 15 percent” and cut demand by about 40 percent, Grain Millers Association of Zimbabwe Chairman Tafadzwa Musarara said in a letter to Chinamasa dated December 30.Rice has become a key staple in Zimbabwe, with imports helping alleviate food shortages as rural parts of the country have been hit by the worst drought in at least two decades. Rice consumption has climbed fourfold to 200,000 metric tons annually since 2009, beating corn and wheat as “the most cost-effective carbohydrate on the market,” the association said. Current consumption levels account for more than 10,000 direct and indirect jobs. But according to his spokesman, Chinamasa is on leave until the end of January and calls to Secretary for Finance Willard Manungo went unanswered.

Source: www.riceoutlook.com