Categories: Stories

Tobacco farmers to pay afforestation levy

The tobacco farmers will this year pay 1.5 percent of their earnings to industry efforts to curb deforestation, an official has said.

Afforestation has become a major issue in tobacco as coal and electricity and the associated infrastructure are beyond the reach of most smallholder tobacco farmers who rely solely on firewood to cure their crop.

The tobacco marketing season opens on March 4 with sales on the auction floors while contract sales start the following day.

Tobacco Industry and Marketing Board chief executive Andrew Matibiri this week told unions, auctioneers and other key stakeholders that the introduction of the tax will finance re-afforestation activities.

“All stakeholders are advised that with effect from the start of the tobacco marketing season all tobacco farmers will be required to pay a levy of 1.5% of gross tobacco sales proceeds. The funds collected will be used for afforestation purposes,” said Matibiri in a statement.

“We therefore advise all auction and contract sales floors to ensure that the levies are deducted and accounted for,” he added.

Zimbabwe’s over 90 000 smallholder tobacco growers destroy an estimated 7.5 million trees annually, mainly in curing tobacco.

The tobacco industry in 2013 formed Sustainable Afforestation Association (SAA) coalition to lead afforestation projects.- The Source

(401 VIEWS)

This post was last modified on February 27, 2015 9:15 am

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Reserve Bank of Zimbabwe expects more foreign currency sellers to join the interbank market

The gazetting into law of the payment of quarterly taxes on a 50-50 basis in…

December 4, 2024

Zimbabwe 2025 citizens’ budget

Zimbabwe has today unveiled a ZiG276.4 billion budget for 2025 during which it expects the…

November 28, 2024

To go or not to go- Mnangagwa in a quandary

Zimbabwe President Emmerson Mnangagwa has repeatedly stated that he is not going to contest a…

November 25, 2024

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024