The Cabinet has approved a zero VAT rate on the importation of selected equipment and machinery used in the development and establishment of electricity generation, aiming to mitigate the impact of the ongoing drought. This decision is part of a broader strategy to alleviate the country’s energy crisis.
In a statement released on Saturday, Chief Government Spokesperson Cornelius Mweetwa announced that the Cabinet expects these tax measures to drive investments and stimulate economic activities in the energy and agriculture sectors once they are implemented.
“Cabinet, as a way to address the challenges arising from the effects of the drought, which also includes the energy power crisis the country is facing, approved some tax measures that could cushion against the impact of the drought,” said Mweetwa.
Additionally, the Cabinet has approved new members for the Food Reserve Agency Board, following the dissolution of the previous board in October 2023. This move is expected to enhance the agency’s effectiveness in managing food reserves amid the drought-related challenges.
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