ZNCC Blames Punitive Taxes And Levies Charged By 6 State Departments For High Meat Prices

5 years ago
Thu, 25 Jan 2018 09:47:34 GMT
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ZNCC Blames Punitive Taxes And Levies Charged By 6 State Departments For High Meat Prices

The Zimbabwe National Chamber of Commerce has blamed a raft of punitive taxes and levies charged by at least 6 state departments for the sharp increase in the prices of meat. The ZNCC revealed this in a paper presented to Vice President, General (retired) Constantino Chiwenga, who was tasked to look into the issue of the price increases. Business urged the government to merge some of the departments to limit the number of levies.

At the moment, beef producers are levied or taxed by the following:

  • The Zimbabwe Republic Police (ZRP)
  • The Ministry of Health,
  • The Environmental Management Authority (EMA)
  • The Agricultural Marketing Authority (AMA)
  • The Division of Livestock Production and Development (DLPD)
  • Rural district councils (RDCs)

Part of the letter written to the General by the ZNCC reads:

There are about five legislations which govern the beef industry, the beef industry is regulated by six government departments

The government departments are meant to assist in the development of the beef industry. But to the contrary, these have increased administration costs…through duplication of fees and processes. For instance, abattoirs are obliged to pay annual registration fees to AMA and concurrently pay department of livestock and veterinary services and annual environmental impact assessment fees (to EMA), which are viewed as punitive. Compliance costs per beast amount to almost $100, which is unsustainable for the sector. Almost all these costs are ultimately borne by farmers because abattoirs will shift the burden to them through suppressing prices. This is raising the prices of final beef output.

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