Farmers still to benefit from $19m tobacco levy 

Source: Farmers still to benefit from $19m tobacco levy | The Herald January 29, 2018

Elita Chikwati and Mellisa Mutasa
Tobacco growers are still to benefit from the $19 million that has been collected from them as tobacco levy since 2015. Government introduced the levy, meant for afforestation, in January 2015 and it was levied on all tobacco farmers at a rate of 1,5 percent in the first year and 0,75 percent in subsequent years and to date $19 million has been raised. Tobacco producers, mostly small holder farmers who rely on firewood to cure their crop complained that they should have benefited from the fund and established woodlots but were not clear of how to access the money or how it was managed.

TIMB communications manager, Mr Isheunesu Moyo last Friday said the money was ring fenced for reforestation programmes in tobacco growing areas and the board was awaiting administrative processes and approval from the Parliament of Zimbabwe.

“TIMB has not started using the afforestation fund collected since 2015 as it awaits administrative processes so that it can scale up its activities to the establishment of 20 000 hectares of woodlots per year for the next 5years.

“This will be enough to cure 100 000 hectares of tobacco the country currently produces on per year and to meet the requirements of the Global Tobacco Cigarette Companies,” he said.

The sustainable tobacco programmers of 2016 stated that from 2020, Global Cigarette companies will not buy tobacco that has not been produced in a sustainable manner, including that which is cured with coal.

“Seized with this situation it is imperative for the tobacco industry in Zimbabwe to adopt aggressive afforestation programmers to remain competitive and relevant to the global cigarette industry.

“In the face of this call to produce tobacco in a sustainable manner,” he said.

Tobacco merchants through the Sustainable Afforestation Association are implementing reforestation programmes with their contracted farmers and have to date planted 14 000 hectares of wood energy to cure tobacco.

ZCFU president Mr Wonder Chabikwa said the afforestation levy was a noble idea, which reduced environmental degradation.

He said every farmer who contributed to the levy had a right to benefit from the fund.

“Afforestation levy was a noble idea which contributes to the curing of tobacco. It encourages indigenisation and production of good yields.

“It is important that farmers start benefiting from the fund. It is unfair that over the years farmers have had their money deducted but they cannot access the funding. We should move with time and it is high time that small holder farmers have their own woodlots for curing purposes,” he said.