Leaf tax threat withdrawn
The spectacular growth of Zimbabwean tobacco production has prompted Mashonaland Tobacco Co. to reopen its processing facility.
Zimbabwe’s government has reversed a decision announced last week to levy a 10 percent tax on the gross sales of tobacco farmers who failed to produce tax clearance certificates, according to a story in The Herald.
The policy reversal was said to have followed a meeting between the Agriculture, Mechanization and Irrigation Development Minister, Dr. Joseph Made, and the Finance and Economic Development Minister, Patrick Chinamasa.
The Zimbabwe Revenue Authority (Zimra) last week instructed tobacco auction floors to deduct a 10 percent tax on the gross sales of farmers who failed to produce valid tax clearance certificates as at March 31.
But the announcement seemed set to upset the tobacco selling season when farmers threatened to withhold their crops in protest.
Made said that the issue had been resolved and he urged tobacco growers to continue delivering their crops to the floors.
“Farmers had made a plea to government,” he said. “We had a discussion with Minister Chinamasa and I am pleased that we have amicably resolved the matter and reached an agreement that is expected to satisfy farmers and the Zimra.”