ZAMBIAN GOVERNMENT INSTRUCTS THE TOBACCO BOARD TO IMMEDIATELY STOP DEDUCTING 3% AS TURNOVER TAX FROM TOBACCO SALES FOR FARMERS

GOVERNMENT HAS INSTRUCTED THE TOBACCO BOARD OF ZAMBIA (TBZ) TO IMMEDIATELY STOP DEDUCTING 3 PERCENT AS TURNOVER TAX FROM TOBACCO SALES FOR FARMERS.

AGRICULTURE AND COOPERATIVES MINISTER DR EUSTARCKIO KAZONGA SAYS TURNOVER TAX WILL BE PAID TO THE ZAMBIA REVENUE AUTHORITY (ZRA) BY INDIVIDUAL FARMERS.

DR KAZONGA TOLD THE NATIONAL AGRICULTURAL INFORMATION SERVICES IN LUSAKA TODAY THAT EASTERN PROVINCE HAD A SPECIAL MEMORANDUM THAT MANDATED TOBACCO FLOOR MANAGER AND TOBACCO MERCHANTS TO DEDUCT 3 PERCENT OF THE GROSS VALUE OF FARMERS’ TOBACCO SALES AS TURNOVER TAX PAYABLE TO ZRA.

HE HOWEVER SAID IT HAS NOW COME TO HIS ATTENTION THAT THE SYSTEM WAS APPLYING TO EASTERN PROVINCE ONLY AND THAT HE FOUND IT NECESSARY TO STANDARDISE THE MODE OF COLLECTING TURNOVER TAX FROM TOBACCO FARMERS.

DR KAZONGA URGED ALL TOBACCO FARMERS IN EASTERN PROVINCE TO PAY THE TURNOVER TAX DIRECTLY TO ZRA, AND DIRECTED TBZ AND TOBACCO MERCHANTS TO REMIT WHAT THEY HAVE ALREADY DEDUCTED TO ZRA.

HE SAID GOVERNMENT IS CONCERNED THAT TOBACCO PRICES ARE NOT PLEASANT TO TOBACCO FARMERS AND THAT HIS MINISTRY IS MAKING CONSULTATIONS ON THE MATTER WITH RELEVANT INSTITUTIONS AT BOTH LOCAL AND REGIONAL LEVEL.

MEANWHILE, TBZ HAS DENIED THE ASSERTIONS THAT IT HAS REDUCED THE FLOOR PRICE OF TOBACCO BY 25 PERCENT.

TBZ CHIEF EXECUTIVE OFFICER AVEN MUVWENDE SAID THE BOARD DOES NOT CONTROL PRICES BUT REGULATES THE REST OF TOBACCO ACTIVITIES IN ZAMBIA AND THAT PRICES ARE DETERMINED BY MARKET FORCES AT INTERNATIONAL LEVEL

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