The Sunday News
THE Association of Rural District Councils of Zimbabwe has agreed in principle to reduce the cattle levy being charged to farmers and other stakeholders during livestock sales, bringing relief to farmers who had complained that the charges were impacting negatively on the viability of the sector.
The Ministry of Agriculture, Mechanisation and Irrigation Development has led the crusade to reduce the charges and has been engaging the Ministry of Local Government, Public Works and National Housing on the matter.
Agriculture, Mechanisation and Irrigation Development Deputy Minister (livestock production) Paddy Zhanda said so far the Rural District Councils have agreed to reduce the charges by five percent although he added negotiations were still continuing with a view to reduce the figure further.
Speaking during a meeting with abattoirs owners and other agricultural stakeholders from Matabeleland region held in Bulawayo on Wednesday, Deputy Minister Zhanda said there was also no justification for the Rural District Councils to continue administering the funds as there were no direct benefits towards the growth of the livestock industry.
“We are really down the line in terms of negotiations to the extent that the Rural District Councils have conceded that the levy of 10,5 percent is high and they are trying to negotiate for five percent so I am doing everything to protect the industry,” Dep Minister Zhanda said
He said the 10,5 percent cattle levy, which amounts to $40 or $50 per animal, was totally unfair.
“The perception I was made to believe was that the levy is being paid by the buyers, which is not true. The levy is coming from the bottom line, the farmer,” Deputy Minister Zhanda said.
He said the cattle levy was exorbitant especially for communal farmers who solely depend on livestock rearing for their livelihood.
“In areas like Gwanda and Mangwe districts there is no cropping, the only source of income for a farmer is to sell his or her animal one day in a year and $40 or $50 is taken by the council for what services? For nothing, so it’s totally unfair. I’m still insisting that the five percent is even higher considering that there is no input from them (Rural District Councils) for the benefit of the industry.”
Livestock specialist Mr Mhlupheki Dube said there was a need to align the cattle levy with those being charged by other countries in the region.
“This levy is charged on the farmer although in some cases local authorities erroneously charge it on farmers especially for cattle that are transported for sale to abattoirs and butcheries outside the district. This levy just has to be revised downwards especially considering that our contemporaries, other countries within the region are paying around $2 per animal for their levies,” Mr Dube said.
The 10,5 percent levy that is being charged by the local authorities and is splitting in the following manner; 3,5 percent cattle levy to the council, 2,5 percent to owners of cattle sale pens (in most cases these are owned by the local authority), three percent to the Division of Livestock Production and Development for live cattle grading and 1,5 percent to the auctioneer.
Zimbabwe Commercial Farmers Union Matabeleland North provincial chairman, Mr Winston Babbage said the proposed reduction of the cattle levy was a welcome development as local authorities were short changing farmers by failing to utilise the funds to rehabilitate livestock infrastructure.
“We are very grateful about the ministry’s effort to have the cattle levy reduced because these local authorities were taking levies and not ploughing back to the communities in terms of maintaining fences and dip tanks, which is one of the things they are mandated to do,” Mr Babbage said.
