ZIMRA raised claims for the output VAT on bricks on grounds that the Company zero-rated bricks without supporting legislation, which Willdale disputed.
PRISCA TSHUMA
“…the company and other industry players have objected to ZIMRA’s interpretation of the law and the matter is pending,” said Willdale.
Despite this, the brick company recorded a revenue increase of 36 percent for the first quarter ended 31 December 2022, compared to the prior year due to steady prices.
“Average prices remained firm, sustained by a favourable product mix, while management remained focused on cost management,” the company said.
Meanwhile, the sales volume for the quarter declined by 2 percent owing to low product uptake caused by liquidity shortages.
“Production levels in the quarter declined in line with available working capital.”
“The scheduled maintenance program has progressed well and the plant is expected to meet targeted efficiencies during the coming peak production season,” added the company.
Willdale lamented the high borrowing rates, which are constraining the group from using borrowings to fund the business.
“…High borrowing rates are making it uneconomic to finance the business through borrowing.”
The Reserve Bank of Zimbabwe recently reduced its interest rates to 150 percent from 200 percent through its Monetary Policy published on 2 February this year.
The company said it is constantly reviewing its short term business plans to navigate the fluid business environment. It has planned several projects, which would provide the critical mass for the business.
Going forward, Willdale said it would exploit the opportunities presented by the firm demands for housing development, shopping mall and school infrastructure construction, provided stock availability is not affected by electricity shortages.
