LOCAL abattoirs have complained of high levy charges for slaughter by rural district councils (RDCs), saying they are pushing them into the brink of collapse. MTHANDAZO NYONI OWN CORRESPONDENT
A number of RDCs in Zimbabwe charge abattoirs $10 per beast as levy for slaughter, a charge abattoirs say is high and increases production costs.
Abattoirs Association of Zimbabwe chairman Godfrey Chanesta said the high levies threatened the viability of players in the industry.
“We are engaging the government regarding RDC levies abattoirs are asked to pay because we feel are very high. We also need uniformity because at the moment RDCs are charging whatever they want at the same time hurting us,” Chanetsa said.
He said the high levies were hurting both the producer and abattoirs, forcing the latter to pass on the cost to the former.
“In the end, producers are forced to opt for other ways of slaughtering their beast rather than bringing them to abattoirs, hence loss of business,” he added.
This comes after the treasury exempted from export tax the sale of raw hides and skins for the period January to December 2014.
Presenting his mid-term fiscal policy, Finance minister Patrick Chinamasa said export tax of $0,75 which the government had introduced, would apply on exports of raw hides other than domesticated bovine animals such as goats and sheep.
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“The local tanneries have inadequate capacity to process raw hides, resulting in excess supply which does not have a local market,” Chanetsa said.
“In order to mitigate closure of companies that had forward contracts, and also boost incomes of smallholder farmers from the sale of excess raw hides and skins, I propose to exempt from export tax, the sale of raw hides and skins, for the period January to December 2014.”
