Farmers press for a reduction in land tax

Chairman of the council Mr Garikai Msika told journalists last week that if most rural councils adopted by-laws for land and cattle levies this would seriously erode farmer earnings and push up their production costs.

Some rural district councils were charging commercial farmers US$2 per hectare, smallholder farmers US$1 per hectare and nearly 12 percent on the sales of all livestock. The council represented the Zimbabwe Farmers’ Union, Zimbabwe National Farmers’ Union, Zimbabwe Commercial Farmers’ Union and the Commercial Farmers’ Union of Zimbabwe.

“A reduction in land unit tax to US$0,20 per hectare in region four and US$0,05 per hectare in region five and a review in other natural regions is required,” said Mr Msika.

“The reduction in the proposed sales levy to a reasonable fixed charge is required regardless of the value of the animals sold. We approached the Ministry of Local Government to discuss the matter with rural district councils. We want the ministry to regulate the levies.”

Zimbabwe Farmers’ Union vice president Mr Berean Mukwende echoed similar sentiments.
“The levies are affecting us negatively. The increase is just too steep and it will force many farmers to sell their livestock on the parallel market,” said Mr Mukwende.

Meanwhile, the farmers’ union was also demanding a maize floor price of not less than US$400 per tonne.
“We have submitted a proposal to the Ministry of Agriculture in which we recommended a maize price of not less than US$400 per tonne. This is the viable price for us,” he said.

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