By James Gwati- Finance Minister Mthuli Ncube has been dragged to the High court by a Harare businesswoman over directing the Zimbabwe Revenue Authority, Zimra to charge retailers Value Added Tax on rice backdated from 2017 in retrospect.

Esther Vongai Zimudzi, through her lawyer Obey Shava of Shava Law Chambers, Rights and Business Centre, on Monday the 29th of March 2021, approached the High Court seeking an order to interdict which she’s suing the Pro Mthuli Ncube and Zimra, from charging VAT on Rice when such a product is exempt from paying VAT in terms of Statutory Instrument 9/2016 as read with Statutory Instrument 26A/2017

Zimudzi argued that as a result of this illegal charge by the Minister and Zimra, the retailers and wholesalers have passed on the cost to the ordinary consumer and this has seen the price of rice in Zimbabwe increase by approximately 20-25% from October 2020 to February 2021, beyond the reach of many.

She argues further that the complete turn around in position which retailers, wholesalers and consumers in Zimbabwe believed to be in place, namely, that all rice was VAT exempt, would contravene the contra fiscum rule, the right to choose and carry on trade. She argues that this violates the right to freedom of trade enshrined under section 64 of the constitution as retailers of rice have been selling same on the basis that it was VAT exempt, only for them to be retrospectively penalized, affecting business, which effect will trickle down to consumers.

She also wants the court to declare unconstitutionally, the demand by Mthuli Ncube and Zimra to have VAT paid retrospectively by retailers and wholesalers who imported rice into the country, more than 3years ago.