A Boost for Zimbabwe's Agricultural Sector: VAT Exemption on Livestock and its Impact on Small-Scale Farmers

The Zimbabwe Commercial Rabbit Breeders Association (Zicorba) has welcomed the government's decision to exempt value-added tax (VAT) on livestock, a move that is expected to inject new vitality into the agricultural sector. The Finance minister's mid-term budget review proposed the exemption of live cattle, pigs, goats, sheep, and bovine semen from VAT, a significant departure from the previous standard rating of live animals and meat.

The removal of VAT on livestock is expected to have a positive impact on the industry and the broader agricultural sector. Firstly, it will reduce the financial burden on farmers by lowering the overall cost of production, which is particularly beneficial for small-scale and emerging farmers who often struggle with high operational costs. The VAT exemption will also make it more affordable for farmers to invest in essential livestock and related products, such as feed, veterinary medicines, and breeding stock.

This change is expected to enhance the productivity and profitability of small livestock farming, contributing to the sustainability and growth of the sector. The Zicorba president, Regis Nyamakanga, noted that rabbit farming, in particular, stands to gain significantly from this policy shift. Rabbits are a versatile and highly productive source of meat, which can be produced with relatively low input costs compared to other livestock.

The removal of VAT on livestock aligns with the government's broader efforts to support and modernize agriculture through various incentives and supportive measures. This includes duty-free imports of agricultural equipment, which further eases the means of production for farmers and enhances mechanization and productivity in the sector.

The VAT exemption on livestock is a commendable step towards revitalizing the agricultural sector. It provides a crucial lifeline for small livestock farmers, encouraging investment, boosting production, and fostering economic growth. Zicorba fully supports this initiative and looks forward to working with all stakeholders to ensure its successful implementation and maximize its benefits for the agricultural community.

Zicorba, established in July 2020, has quickly emerged as one of the most dynamic and successful farming associations in Zimbabwe, with chapters established across all ten provinces of the country. The association's primary goal is to facilitate the transition into the cash economy and uplift the livelihoods of 1.5 million households in the country through rabbit farming. The group secured investment for the establishment of the country's first rabbit abattoir in May 2021, which has since become one of the largest on the African continent.

This strategic initiative ensures the hygienic processing of rabbit meat, enhancing the quality and safety standards of their produce. The VAT exemption on livestock is a significant step towards achieving this goal, and Zicorba is committed to working with all stakeholders to ensure its successful implementation and maximize its benefits for the agricultural community.

In conclusion, the removal of VAT on livestock is a significant milestone for Zimbabwe's agricultural sector, and Zicorba is committed to working with all stakeholders to ensure its successful implementation and maximize its benefits for the agricultural community. The VAT exemption is expected to inject new vitality into the sector, reducing the financial burden on farmers, enhancing productivity and profitability, and fostering economic growth.