Scrapped VAT on live animals, fish to boost production

Fish production and animal husbandry in Zimbabwe are likely to increase due to the scrapping of VAT on meat and fish products by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube.

The move was made largely for public health reasons, with many small butchers switching from formal licensed abattoirs to informal animal slaughter where they could escape VAT.

Minister Ncube scrapped VAT to contain costs of meat and fish and so increase sales, especially from the licensed and inspected sectors.

This will see a significant job creation, more production and give impetus to nutritional value in line with the Agriculture, Food systems and Rural Transformation Strategy (2023-2025).

The initiative will also encourage formal trade, promote organised marketing and boost farmers’ incomes as the country moves onwards in achieving Vision 2030 of becoming an upper-middle-income society. The move removes a 15 per cent VAT on all meat products including fish.

In an interview on the sidelines of Fisheries and Aquaculture Indaba held in Harare, Department of Veterinary Services chief director Dr Pious Makaya said the scraping of VAT will cut the cost of production adding that this will minimise imports and farmers will have access to local consumers.

Zimbabwe is producing around 15 000 tonnes of fish against the national requirement of 60 000 tonnes, with imports of around 45 000 tonnes covering the gap to meet demand.

“The Government is also training farmers and research officers to assist farmers so that we grow. We have already scrapped VAT on live animals.

“It’s effective right now as l talk but we want to scrap more VAT which is imposed on animal-derived foods which are also fish products.

“For us to do that we need three ministries that are involved. These involve the Ministry of Commerce and Industry, of Lands, Agriculture, Fisheries, Water and Rural Development and of Finance, Economic Development and Investment Promotion then we can gazette that officially,” Dr Makaya said.

The Government is also putting strategies in place to ensure the growth of fish production to around 35 000 tonnes per year in the near future en route to self-sufficiency and then exports.

Buy Zimbabwe chairman Mr Munyaradzi Hwengwere said it is critical to promote the consumption of locally produced products adding that the removal of tax will enable farmers to compete with others globally.

Mr Hwengwere also said there is a need to address challenges that were faced by farmers in growing fish to enable the growth of fish farming.

“Consumers will go to the cheaper product irrespective of where the product is coming from so we need Zimbabwe to be competitive in respect to the fish products. Right now we are not as competitive as our neighbours and as a result, consumers are running away from our fish in preference for imported fish.

“Worse, a lot of imported fish is smuggled and it’s dangerous for your health because if you do not take care of your fish it will harm you. If you don’t manage the quality of your fish it can be detrimental to your health. Feed processing costs are also high in Zimbabwe so the industry as a whole must restructure,” he said.

At the same event, the Permanent Secretary in the Ministry of Lands, Agriculture, Fisheries, Water, and Rural Development Professor Obert Jiri said the Government wants to ensure the growth of the fisheries sector adding that the issues of VAT had been taken into consideration.

He said they are planning to decentralise fingerling production by opening new sites to grow the fisheries sector to close the 45 000 tonnes gap.

Farmers said there is a need to come up with a framework that governs fish production, as there is presently no legislation regulating aquaculture and fisheries.-herald