By KENNNEDY MUPESENI –
ZAMBIA National Farmers’ Union (ZNFU) wants Government to impose 25 per cent Export Tax on stock feeds to encourage value addition in the agriculture.
In their proposal to the Ministry of Finance, ZNFU wants Government to introduce Export Tax on maize bran, cotton and sunflower cake in the 2016 national budget.
ZNFU said the livestock sector has been experiencing acute shortage of maize bran, cotton and sunflower cake hence the need to introduce a tax to reduce exports.
“The country has been experiencing acute shortages of maize bran, and cake requirements because of the increased exports due to high demand in neighbouring countries in the region,” ZNFU said.
It observed that the shortage of stock feed on the local market shot up prices for livestock prices making local producers uncompetitive in local and regional markets.
ZNFU believes that 25 per cent Export Tax on bran or cake would encourage value addition and job creation in Zambia while generating revenue.
The farmers’ organisations also want 25 per cent duty on imported milk powder, yogurt, long life milk and sour milk products introduced to curb unfair competition.
It alleged that the dairy sector was facing unfair competition due to cheap and subsidized dairy products from the European Union.
This unfair competition was a threat to local production and growth of the dairy sector and that introduction of 25 per cent duty would offer protection to the sector, create jobs and contribute to nutrition security.
ZNFU submitted that Government should reclassify porch packaging material from current Zambia Revenue Authority (ZRA) subheading 3920.62.10, with an import duty of 15 per cent to 3920.63.10, with import duty of five per cent.
The porch is used for packaging long life milk and currently there is 15 per cent duty on the packaging product which the organisation said drives the cost of milk up and makes it unaffordable by the lower income groups.
If Government implemented such proposals, ZNFU said Zambia would see lower income consumers afford long life milk leading to improved food nutrition security.