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Friday, July 12, 2024

VAT for agricultural inputs remains suspended

Story by Stanley James, Business Editor

TREASURY has maintained the removal of a 15 percent Value Added Tax (VAT) on agricultural inputs, implements and produce to attract more infrastructure and irrigation projects in Zimbabwe.

Presenting a treasury paper on agriculture tax incentives at the recently held Zimbabwe Irrigation Investment Conference, Finance, Economic Development and Investment Promotion Minister Professor  Mthuli Ncube revealed Government’s commitment to the growth of farming operations.

In light of the uncertainties associated with the farming industry emanating from the effects of climate change, coupled with the need to attract more irrigation developments, the treasury boss assured stakeholders that a 15 percent VAT on agricultural equipment and selected inputs remains suspended for the benefit of the farming sector.

 “In support of investments in irrigation infrastructure, Government has availed various tax incentives that include ensuring that all agricultural inputs, implements and produce are exempt from the VAT  in terms of  Section 10 and 11 of the VAT  as read within the  Statutory Instrument 15 of 2024, agricultural equipment removed from VAT includes tractors, machinery for soil preparation, combine harvesters, centre pivots, sprinklers and pumps among others,” said the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube.

 Players in the farming sector contend that the suspension of the 15 percent VAT will further boost irrigation investments.

Director of  Western Pivots Zimbabwe,  Mr Gary Grubb said, “The latest revelations by the minister  are really critical in terms of the farming sector growth,  taking into account the need to attract more projects while unlocking capital that is required to ensure growth in the long term.”

 “We remain committed to focusing on investing in Zimbabwe and therefore the viability of the farming sector is at stake while focusing on the future becomes imperative,” said Zimbabwe National Farmers Union President, Dr Shadreck Makombe.

Tobacco Farmers Union  Trust President, Mr Victor Mariranyika said,  “Irrigation is really critical and by so doing it means we are being given an opportunity to further scale up or focus on irrigation to advance the interests  of the Government  in the future.”

Treasury has this year set aside resources amounting to over ZWG$88 million under the irrigation sector targeting mainly the irrigation rehabilitation projects, construction of dams, farm mechanisation and technological innovations.

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