Outcry over unit tax

Sukulwenkosi Dube Plumtree Correspondent
LIVESTOCK farmers in Matabeleland South are failing to pay annual Unit Taxes to local authorities saying the charges where beyond their reach.
The farmers have addressed a letter to the Government appealing for a reduction of the unit tax. Local authorities recently pointed out that livestock farmers had declined paying the stipulated $2 per hectare.
Matabeleland South Livestock Association chairperson Mr Clement Malaba said farmers were not up to date with their taxes but dismissed allegations of refusing to pay.

“It is true that the majority of farmers are not up to date with their payments just as the local authorities have pointed out but it is not true that they have declined paying. It is more about the affordability of unit taxes that are being charged. The truth of the matter is that the charges are not compatible to the level of production of the farmers.

“We have tried communicating this to the relevant authorities so that the plight of farmers can be addressed and we are still waiting for a response. But until the charges have been reduced getting farmers to pay will remain a challenge,” said Mr Malaba.

Bulilima Farmers Association chairman Mr Obert Sibanda said less than 20 percent of the farmers within his district afforded paying the unit tax.
“The problem farmers are facing is that they have hardly reached a high level of production and paying the unit tax becomes strenuous to them. Livestock farmers record profits at a slow pace because they can only start selling their cattle after three years.

“That is why the number of farmers who are paying the unit tax is very low. It becomes severe for farmers who operate on a large scale basis because their charges are even higher,” he said.

Mangwe Farmers Association chairman Mr Adam Bango said farmers were disputing the modalities involved in charging the unit tax.
“People are not necessarily declining to pay but their query is on the improper modalities surrounding the unit tax. Each farmer has to pay $2 per hectare and if a farmer has 1 000 hectares he has to pay $2 000 a year.

“This amount has to be paid regardless of whether the farmer sold any beasts on that particular year or not. Farmers sell their beasts after three years and I wonder how they are expected to raise that amount during the three years,” said Mr Bango.

He said the unit tax would be more appropriate if a farmer had to pay it after recording sales.
“On average the small scale farmers have 500 hectares which requires them to pay $1 000 while large scale farmers have 2 000 hectares of land and at the yearend they have to pay $4 000 which means about $330 goes to the unit tax per month.

“As a result the farmers are unable to recognise significant profits as a result of these charges. It will be much easier and meaningful if a farmer is expected to pay after selling his beasts,” said Mr Bango.

He said the unit tax had become a hindrance to many farmers who were eagerly waiting for their plea on the reduction of the unit tax to be considered.

“We lodged our complaint with the relevant parliamentary portfolio committee requesting a reduction of the unit tax or that it is paid after a farmer records sales and we are waiting for a positive response,” said Mr Bango.

The local authorities of Bulilima and Mangwe recently revealed they would take legal action against livestock farmers as they had refused to pay unit taxes.