INNSCOR Africa Limited says it continues to engage the government over a slew of taxes levied on a variety of its manufactured goods affecting its profitability.
The Victoria Falls Stock Exchange (VFEX)-listed conglomerate, in its first quarter trading update for the period ended September 30, 2024 reported serious cost pressures on its subsidiaries from the value added tax (VAT) changes and the new sugar tax.
The imposition of VAT on rice and changes from zero-rated to exempt on products such as flour, maize and stockfeed prohibits input VAT paid from being claimed, increasing the cost of production.