Suspension of duty on most basic commodities has been extended to December 31 this year, Finance Minister Tendai Biti said yesterday.

The minister said some goods enjoying this relief would be struck off the list with effect from August 31 as supplies of those products by local firms had improved.

These included margarine, washing powder, petroleum jelly, bathing soap and various cosmetic products.

Minister Biti proposed to levy duty rates of between 10 and 15 percent on these products. All other basic foodstuffs remain duty-free.

He said scrapping their duty-free status would protect local producers.

The Government suspended duty on basic commodities to address shortages due to depressed local output, and to stabilise prices following a decade of economic decline.

Potential revenue lost because of the relief measure amounted to US$36 million in the four months to April 2010.

The import duty relief was due to expire at the end of this month and would be revie-wed during the 2011 National Budget.

Minister Biti, however, noted that the sus-pension of duty on basic goods had resulted in an influx of poor quality and counterfeit products.

"The quality of products is a key determinant to the welfare of consumers, hence there is need to safeguard against dumping of sub-standard products, whether they be foodstuffs or drugs.

"In order to protect vulnerable consumers and also level the playing field between locally-produced and imported products, Government will strengthen enforcement capacity of the structures which administer standards and also invoke anti-dumping measures and countervailing duties where necessary," he said.

Local companies have been struggling to produce enough for the local market owing to a number of challenges such as power shortages, high labour costs and inadequate funding.

Capacity utilisation has remained below 50 percent in the manufacturing sector and is not projected to improve much this year.

Food and beverages manufacturers have, however, increased their capacity utilisation to above 50 percent.