Tobacco farmers have demanded that the reafforestation programme should be expedited amid indications that only 4 500 hectares of gum trees have been planted since collection of the levy started in 2015.
The current sluggish reforestation efforts may make Zimbabwe’s tobacco less appealing on global markets that now favour products produced using sustainable methods.
As reported by The Herald, Zimbabwe Tobacco Association (ZTA) chief executive officer Rodney Ambrose said currently, 70 per cent of the tobacco produced in the country is cured using wood. He said:
It’s now almost 10 years since TIMB started collecting an afforestation tax of 0.75 per cent from growers with over US$40 million collected and very few afforestation programmes taking place.
Afforestation programmes are critical to the sustainability of Zimbabwe’s tobacco production and markets, as close to 70 per cent of the crop is cured using wood.
In the 2015 national budget, the Government re-introduced the tobacco levy on tobacco growers at a rate of US$0.015 per dollar of the selling price.
The funds generated from the levy are meant for financing re-forestation activities.
In the 2016 national budget, the tobacco levy was slashed by half to 0.75 per cent due to El Nino and has remained on that level until now.
Calculation of statistics from TIMB shows that over US$46 million has been collected since 2015.
More: Pindula News