03 Nov 2016

The Assistant Minister of Investment, Trade and Industry, Mr Biggie Butale has said the 15 per cent import levy of wheat has not been removed completely but has been reduced over two years now.

Responding to a question from Member of Parliament for Ramotswa,Mr Samuel Rantuana in Parliament, Mr Butale said in 2014, following national consultations which included both bakeries and millers on issues raised by the Bakery industry regarding the uncompetitive pricing of local products and quality of flour, a decision was made to gradually reduce the wheat levy by 1.5 per cent over a period of ten years. He pointed out that the milling industry is still protected by the wheat levy and to date the levy stands at 12 per cent.

Mr Butale said the levy was meant to bring prices of imported products to par with the domestic prices whilst the domestic milling industry builds capacity to become competitive in the local market.

  He stated that the levy was not meant to be a permanent measure, but only an interim measure to support the local industry.

Mr Rantuana had asked the minister what he was doing to protect the millers in Botswana against the influx of foreign importers who seek to unfairly remove them from the market by selling goods at below market price.

He had also wanted to know if it was true that the 15 per cent import levy had been removed. ENDS