Source: Govt slashes agric sector levies, licence fees – herald
Herald Reporter
THE Government has reviewed licences, permits, levies and fees in the agriculture sector, slashing charges for fertiliser producers and horticulture exporters, reducing the cotton buying point levy by 75 percent, and scrapping fish harvest fees, among other measures.
This comes after Cabinet recently indicated that there would be a wholesome revision to streamline taxes and regulatory fees in the agriculture sector, as a response to President Mnangagwa’s directive to improve the ease of doing business.
The reforms will see a reduction of some regulatory fees for fertiliser producers and horticulture exporters, particularly for small‑scale farmers, youth and women.
In addition, the Government approved a waiver of licences for farmers to import equipment for their own use, as well as reviewing regulatory frameworks to incentivise private investment in dam construction and water infrastructure.
The exercise also reduces the cotton buying point levy from US$800 to US$200, eliminates Grain Marketing Board (GMB) grain movement permits, scraps fish harvest fees and removes import licencing requirements for agricultural equipment spares.
Furthermore, the Government rationalised Agricultural Marketing Authority (AMA) licences, permits and fees, and introduced support measures for key agricultural sub‑sectors.
The exercise forms part of broader changes to taxes and regulatory fees for businesses to enhance the ease of doing business and make the country more investor‑friendly.
A similar exercise was recently conducted in the transport, retail, manufacturing, energy, health and financial services sectors.
The remaining sectors are construction and liquor.
In a statement yesterday, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the reforms are expected to ease the cost and burden of compliance for businesses.
“Agriculture remains a cornerstone of the country’s economy, contributing approximately 12 percent of the Gross Domestic Product (GDP), over 30 percent of formal employment, and more than 60 percent of raw materials for industry,” Professor Ncube said.
“In furtherance of Government’s broader strategic interventions to reduce production costs, enhance sector competitiveness, and strengthen national food security, Cabinet has approved a comprehensive package of reforms to rationalise licences, permits, levies and fees across the agriculture sector, aimed at improving the ease of doing business and boosting overall productivity.
“The reforms are in line with directives issued by His Excellency, President Mnangagwa, and are designed to address high regulatory costs, administrative inefficiencies and fragmented compliance requirements that have historically constrained growth across agricultural value chains.”
Professor Ncube said the harmonised and capped charges across Rural District Councils, including the standardisation of the cotton buying point levy, will reduce compliance costs, improve farmer incomes, and enhance market transparency.
He said the abolition of grain movement permits will eliminate administrative bottlenecks, enable faster movement of grain, and improve market efficiency.
Professor Ncube said the removal of fish harvest fees will reduce production costs and improve the viability of fisheries operations, while the removal of import licencing requirements for agricultural equipment spares will reduce machinery downtime, improve maintenance turnaround and increase productivity.
He said besides the reforms, the Government had approved additional measures, such as selected reductions in fees for fertiliser producers and horticulture exporters, which will lower input costs and improve productivity.
“Additional measures include reductions in selected regulatory fees affecting fertiliser producers and horticulture exporters, with particular focus on small‑scale farmers, youth and women,” Professor Ncube added.
“Target beneficiaries are fertiliser producers, horticulture farmers, exporters, SMEs, youth and women. Expected outcomes are lower input costs, improved productivity and enhanced competitiveness in domestic and export markets.”
He said in addition to the above measures, Cabinet also approved complementary structural reforms to strengthen the agricultural operating environment.
“This includes a waiver of import licences for farmers importing equipment for their own use; review of regulatory frameworks to incentivise private investment in dam construction and water infrastructure; and strengthened enforcement measures to curb theft of agricultural produce and equipment, including the introduction of stiffer penalties,” Professor Ncube said.
He said the reforms are expected to significantly improve policy predictability, regulatory quality and ease of doing business in agriculture — a key driver of sustainable economic development and private sector growth.
Professor Ncube said the measures are anticipated to reduce the cost of production across agricultural value chains, improve the competitiveness of Zimbabwean agricultural products, and enhance national food security.
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