In a significant move aimed at revitalising Zimbabwe’s domestic wine manufacturing sector, the government has announced the suspension of excise duty on imported raw wine for approved manufacturers. This policy, outlined under Statutory Instrument 68 of 2025, officially came into effect on June 27, 2025, and will be in force for a period of two years.
The decision, which amends the existing Customs and Excise (Suspension) Regulations, 2003 — originally enacted as Statutory Instrument 257 of 2003 — allows qualifying wine producers to import up to 100,000 litres per year of raw wine (classified under commodity code 2204.29.99) without incurring excise duty. The measure is designed to support value addition in the local beverage industry by reducing production costs and enhancing competitiveness.
The suspension was introduced by Mthuli Ncube ,the current Minister of Finance, Economic Development and Investment Promotion for the Republic of Zimbabwe, exercising powers vested under sections 235 and 120 of the Customs and Excise Act [Chapter 23:02]. The policy is one of several recent interventions targeted at supporting local industries and boosting manufacturing, in line with Zimbabwe’s National Development Strategy 1 (NDS1), which prioritises industrialisation and value chain development.
By eliminating excise duty on raw wine imports, the government hopes to lower input costs for local producers, thereby encouraging more wineries to process wine domestically rather than relying on finished imports. This, in turn, is expected to create jobs, increase revenue within the sector, and reduce the country’s import bill.
Zimbabwe Suspends Excise Duty on Raw Wine Imports to Spur Local Industry Growth
Under the new provisions, only “approved wine manufacturers” will be eligible to benefit from the excise duty suspension. These are defined as importers who have received formal authorisation from the Commissioner of the Zimbabwe Revenue Authority (ZIMRA) to bring in raw wine for processing, within the annual volume cap of 100,000 litres.
To qualify for the duty exemption, manufacturers are required to submit a signed declaration with their customs import entry. This declaration must confirm that the raw wine being imported is intended solely for processing at the importer’s approved facility and not for direct sale or distribution.
To prevent abuse of the system, the policy includes provisions for monitoring and enforcement. The Commissioner of ZIMRA retains the authority to deny or revoke the suspension of duty if an approved manufacturer fails to comply with the relevant statutory obligations, particularly section 34C of the Revenue Authority Act [Chapter 23:11]. This section relates to compliance with registration, reporting, and record-keeping requirements for taxpayers.
The regulation ensures that only compliant, legitimate manufacturers benefit from the excise duty relief, and that the imported wine is used as intended—for local production and not as a loophole for tax avoidance or dumping in the local market.
Early responses from industry stakeholders have been largely positive. Many local wine producers, particularly small to mid-sized enterprises, have welcomed the move as a timely and strategic intervention that will help revive a struggling industry.
“We are very encouraged by this support from the government,” said Tinashe Moyo, a winery owner based in Mashonaland West. “Accessing affordable raw wine has been a long-standing challenge. With this new suspension in place, we can finally scale up our operations and compete with imported brands.”
Industry analysts also believe the new regulation could pave the way for a more vibrant wine value chain in Zimbabwe. With access to cheaper raw inputs, producers can now invest more in packaging, branding, and distribution. Additionally, there may be positive ripple effects for related sectors, including agriculture, hospitality, and tourism.
The suspension aligns with broader efforts by the Ministry of Finance to promote import substitution, domestic value addition, and foreign exchange retention. By fostering a local wine manufacturing base, the government hopes to reduce reliance on expensive imports and support export diversification in the medium to long term.
Economist Ruth Chikowore noted that policies like this can yield significant returns if supported by complementary measures. “Duty suspensions alone won’t revive an industry,” she said. “There also needs to be access to finance, technical assistance, and market development. But it’s a strong step in the right direction.”
Conclusion
The suspension of excise duty on imported raw wine represents a strategic policy shift aimed at empowering Zimbabwean manufacturers and rejuvenating the wine industry. As the measure rolls out, its success will depend on robust implementation, transparency, and ongoing support from both government and private sector players.
For now, the move signals Zimbabwe’s commitment to creating a more favourable environment for domestic production, with the hope that local wines will soon become a prominent feature in both national and regional markets.
Source- Pindula
