Govt Scraps Off Import Tax On Global Fund

Govt Scraps Off Import Tax On Global Fund
Published: 2016 May 25 04:23:31 (1518 Views)


Government has scrapped value added tax on all goods purchased by the Global Fund to fight Aids, tuberculosis and malaria or on its behalf with effect from January 1, 2015.

According to Statutory Instrument 51 of 2016 on value added tax (Global Fund) (Refunds) regulations 2016 published last Friday, the Global Fund will be refunded any tax paid for any goods or services purchased for it or on its behalf.

The refund will be made if the responsible officer of the Global Fund or its agent makes an application in writing or in cases where Government certifies that such goods or services were purchased using funds from the Global Fund.

“The refund of tax shall be made to the Global Fund or its agent in respect of goods or services purchased by Global Fund or its agent, if the responsible officer of the Global Fund or its agent makes an application in writing to the commissioner and the Ministry of Health and Child Care certifies in each application that such goods and services were purchased using funds provided by the Global Fund solely for the fight of AIDS, Tuberculosis and Malaria,” reads part of the SI.

It further says the Ministry of Health and Child Care should also certify that the purchased goods or services will not be disposed of without prior approval of the commissioner and payment of appropriate tax and provision of other information relating to the goods and services as specified by the commissioner.

This latest development follows the confirmation of the Privileges and Immunities to the Global Fund by President Mugabe in line with grant regulations. In his communication to the Ministry of Health and Care last year, Finance and Economic Development Secretary Mr Willard Manungo said in line with the agreement, Government was then obliged to scrap tax on Global Fund goods and services.

“As you are aware, Government and the GFATM signed a framework agreement on November 3, 2014 in terms of Article 12 of the grant regulations to the framework agreement, Government was obliged to grant privileges and immunities to the Global Fund,” wrote Mr Manungo.

“I am pleased to advise that His Excellency the President in terms of Section 7 of the Privileges and Immunities Act (Chapter 3:03) has confirmed privileges and immunities to the Global Fund,” he said.

The Global Fund is one of the biggest donors working in Zimbabwe to address HIV, tuberculosis and malaria burden.

- Herald
Tags: Import, tax, Global, Fund, ,
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