Biti Meant Well With Duty. Industry Let Him Down
Finance Minister Tendai Biti expressed regret at the restoration of duty on selected basic goods after the recent spate of price increases that have put inflationary pressures on the economy.
And you have to feel sorry for him. He put the duty on because he trusted industry. The businesses would maintain prices and local manufacturers would behave. They would now be able to price themselves at a level that was competitive and below the imported goods.
But no. Business raised prices with some goods going up by as much as 30%. This of course makes very little sense given that duty is set at way below that.
It sort of feels like giving responsibility to a child based on the trust that they will behave responsibly only for them to behave inappropriately.
Trust is a hard thing to have but an easy thing to throw away. Business has not shown the same faith in Minister Biti that he has shown in them.
It is a shame. I feel for him.