Zim loses US$30m to smuggled washing powder

Zimbabwe is losing approximately US$30 million a year through the smuggling of Maq washing powder, a report by the Detergents Manufacturers Association (DMA) claims.

About US$12 million is foregone annually through tax evasion  while US$18 million is externalised to purchase the product before it is smuggled through Zimbabwe’s porous borders, the association said.

“It can be calculated that the government is losing approximately US$30 million a year just through the smuggling of a single product into Zimbabwe, Maq washing powder, as US$12 million is foregone annually through evaded taxes and US$18 million is externalised out of Zimbabwe to purchase the smuggled product from South Africa,” a recent DMA report read.

“Smuggling is, therefore, not only a significant problem for the industry and the workforce, but also for the government and the economy as a significant amount of revenue is lost due to the evasion of duties and taxes because of the smuggling.”

https://www.newsday.co.zw/2021/10/zim-loses-us30m-to-smuggled-washing-powder/