info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
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The Cotton Company of Zimbabwe (Cottco) has proposed that cotton farmers be exempted from the 2% tax on electronic transactions to help them build capacity.
In his report presented at the 2018 pre-Budget seminar held in Bulawayo last week, the chairperson of the Portfolio Committee on Lands, Agriculture, Water, Climate and Rural Resettlement, Justice Mayor Wadyajena said Cottco wanted farmers to be exempted from paying some of the taxes.
“In order to promote food security and economic development in the country the government should support agriculture programmes by allocating at least 10% of its national budget to agriculture,” he said.
“For the 2019 budget, Cottco proposed exemption of cotton farmers from the 2% tax on electronic transactions. In 2018, $1,3 million will be collected from this tax. (It also proposed) exemption of cotton farmers from 10% withholding tax. Tobacco farmers have been granted this exemption,” Wadyajena said.
Government recently introduced 2% tax on electronic transactions above $10 up to $500 000 but the tax has been seen as retrogressive as retailers raised prices to offset possible losses, a move likely to increase the rate of inflation.
Wadyajena said Cottco also proposed that there should be exemption of duty on wool packs imported from India.It also requested for zero value added tax (VAT) when the parastatal sells lint to local manufacturers.
“Currently, Cottco is charged 15% VAT. The manufacturers are only able to buy and value add 15-30% lint from Cottco, because of limited funding from banks,” Wadyajena said.
