by Zivanai Dhewa

Following the recent fuel price hikes, Government has taken preventive measures to cushion its citizenry from the commodity price increase through a price adjustment compensatory framework.

“Cognisant of the need to prevent generalised price increases for goods and services following the fuel price adjustments, Government has decided to provide relief through refund of excise duty on fuel consumed by registered business in the Manufacturing, Mining, Agricultural and Transport sectors,” said Professor Mthuli Ncube.

Articulating how the relief will be implemented, Prof Ncube said, “The relief to be provided will be equivalent to the difference between the prevailing rates or excise duty and the rates that were applicable prior to this change.”

In the statement, Prof Ncube added that business will however have to meet its end of the bargain, in order to benefit from the above rebate on excise duty.

“In order for business to benefit from the relief, business will have to meet the following criteria, the prices of goods and services by beneficiaries should have not increased relative the latest change in the price of fuel; the beneficiaries should be registered and compliant for tax purposes; beneficiaries should be members of recognised business association and beneficiaries should provide evidence of the productive use of fuel.

Government has warned businesses to desist from any form of rampant market indiscipline.

“Any abuse through misrepresentations of facts with the view to benefiting from the facility will result in denial of use of the facility and imposition of a penalty.

“Furthermore, Government would want to urge all business leaders to desist from any form of rampant market indiscipline…. Which serve to undermine government efforts to restore macroeconomic stability,” said Prof Ncube said

He further urged business to partner and complement government efforts to revive the economy by refraining from any counterproductive measures such as wanton price hikes.