Cabinet approves agric sector taxes, permits review

Cabinet approves agric sector taxes, permits review
Published: 3 hours ago
Cabinet has approved a comprehensive review of licences, permits, levies and fees in the agriculture sector, with reforms specifically targeting the livestock, dairy farming and stockfeeds sub-sectors.

The decision follows President Emmerson Mnangagwa's directive last week that ease-of-doing-business initiatives must be fast-tracked, with a commitment to review regulatory costs across 12 key sectors within six months.

Announcing the development yesterday, Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere said the review was not only in compliance with the President's instructions but also aimed at creating a more business-friendly environment to drive economic growth.

Agriculture remains a cornerstone of Zimbabwe's economy, yet farmers and agro-processors have long complained of high and duplicated regulatory costs. In the beef value chain, for example, farmers, abattoirs and meat processors pay multiple fees to different agencies for livestock movement permits, veterinary inspections, meat grading and slaughtering services. These charges are often repeated across institutions, raising costs for formal operators.

Under the new reforms, Government is expected to consolidate these fees and reduce the overall burden on farmers and agribusinesses. Many of the current charges are levied annually, creating significant compliance costs for new entrants and smaller operators.

The food processing sector, which includes bakeries, canneries, beverage manufacturers and small-scale agro-processors, also faces a range of fees for inspections, product certification, health and safety licences, and local authority permits.

"In fulfilment of last week's Cabinet directive and His Excellency the President's instruction, Cabinet considered and approved the review of licences, permits, levies and fees subject to further refinements in the agriculture sector, focusing on livestock, dairy farming and stockfeeds sub-sectors," Dr Muswere said. "This is in line with ongoing ease-of-doing-business reforms, which aim to reduce the cost of doing business and enhance growth in the Zimbabwean economy."

The streamlining of fees is part of a broader economic reform agenda designed to stimulate growth, attract investment and make Zimbabwean agriculture more competitive.

Meanwhile, under the economic growth pillar of the National Development Strategy 1, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube reported that mobilisation of tax and non-tax revenue had exceeded targets. He attributed the success to improved taxpayer engagement, intensified follow-ups on registered taxpayers, and partnerships with associations to reach unregistered businesses.

Infrastructure development projects are also progressing. ZIMRA staff houses in Maitengwe, Matabeleland South, have been completed, while the ZIMRA Chiredzi office block in Masvingo is nearing completion. Work is underway on the IDBZ Gutu Solar Project in Masvingo and the IDBZ Kadoma Cluster Housing Development in Mashonaland West.

The agricultural regulatory review is expected to be finalised in the coming months, paving the way for lower operational costs and greater efficiency in one of Zimbabwe's most critical economic sectors.
- The Herald
Tags: Agric,

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