By CHATULA KANGALI –
MILLERS have appealed to the Government to extend the removal of Value Added Tax (VAT) on agricultural machinery to milling equipment in order to spur diversification in the sector
Finance Minister Felix Mutati proposed for the removal of VAT on all agricultural machinery and implement in the 2018 national budget to encourage development and diversification in the sector.
Millers Association of Zambia (MAZ) president Andrew Chintala said in an interview that the Government should remove duty on milling equipment because they were important in the diversification of the sector.
Mr Chintala said milling equipments were capital goods and would help add value to the locally produced crops which were mostly sold in raw form.
He said the removal of VAT milling equipment would   increase investments in the milling sector and create more jobs for the locals.
“We are pleading with the Government to extend  the  removal of  VAT on agricultural  equipment  and machinery to milling equipment  to help  us  acquire  assorted  equipment  to mill and add value to the different types  of crops,” he  said.
Mr Chintala said millers in Zambia had concentrated on milling maize and it was time for the sector to diversify into other crops such as cassava, millet and sorghum among others.
He said there was need  for more value addition of the  locally produced  crops  in the  country  in order  to  grow the economy and provide  jobs  for locals.
Mr Chintala said increased investment in the sector would also provide a ready market for farmers across the country.