Online Reporter
Mukudzei Chingwere, Zimpapers Writer
CABINET has approved a comprehensive review of licences, permits, levies and fees in the agriculture sector, specifically targeting the livestock, dairy farming and stockfeeds sub-sectors.
Yesterday’s approval follows President Mnangagwa’s directive last week that the ease of doing business initiatives must be implemented, with a commitment to review the levies, licences, fees and permits across 12 key sectors within six months.
The initiative is part of the broader effort to implement ease-of-doing-business reforms as directed by the President.
Announcing the approval by the Cabinet yesterday, Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere, said the review was essential, not only for compliance with the President’s instructions, but also for fostering an environment conducive to economic growth.
The focus on agriculture, a cornerstone of the economy, reflects the Government’s commitment to alleviating financial burdens that have historically hampered productivity and sustainability in this vital sector.
In the beef value chain, farmers, abattoir operators and meat processors presently face multiple fees from different regulatory bodies for livestock movement permits, veterinary inspections, meat grading and slaughter, among other things.
These costs are often duplicated across agencies, making it expensive for players to operate formally.
It is envisaged that under the new reforms, the Government will consolidate these charges and lower the overall financial burden.
Many of these are levied annually, creating heavy compliance costs, especially for start-ups.
For the food processing sector, which includes bakeries, canneries, beverage manufacturers and small-scale agro-processors, regulatory costs include inspection fees, product certification charges, health and safety licences, and local authority permits.
Said Dr Muswere yesterday: “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 stock-feeds sub-sectors. This is also in line with the implementation of the ongoing case of ease-of-doing-business reforms, which aims to reduce the cost of doing business and enhance growth in the Zimbabwean economy.”
The Cabinet’s decision is a key shift in Government policy, aimed at reducing the regulatory hurdles that have long obstructed business viability.
The existing framework of levies, licences and fees has faced widespread criticism from business operators, who argue that these financial constraints are punitive and detrimental to their sustainability.
In line with the ongoing reforms, the Cabinet’s review is expected to provide a clearer and more streamlined approach, ultimately enhancing the ease of doing business in the agriculture sector.
This move is part of a larger strategy to stimulate economic growth and attract investment, ensuring that Zimbabwean businesses can thrive in a competitive marketplace.
Meanwhile, Dr Muswere said in terms of the economic growth pillar of the National Development Strategy 1, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, highlighted that the mobilisation of tax revenue and non-tax revenue has surpassed the set target.
“Under the economic growth and stability pillar, the tax and revenue management system is being implemented in three phases and has achieved the following: the projected active taxpayer target was surpassed due to nurturing activities for new registrants and also intensified follow-up on already registered taxpayers.
“A strategy to engage associations and other stakeholders who deal with unregistered taxpayers has been put in place and there was improvement from the first quarter performance of 25,25 percent on-time compliance rates,” he said.
Bunjiwe Mkwananzi