Thursday, January 26, 2012

Farmers call for review of fees on livestock

Farmers call for review of fees on livestock
By Gift Chanda
Tue 24 Jan. 2012, 12:00 CAT

FARMERS have called for a review of fees and charges imposed on key stakeholders in the livestock sector. In its review of council fees and charges on the livestock sector in Zambia, the Zambia National Farmers Union (ZNFU) has observed that multiplicity of the fees and charges imposed by the council, the police and the veterinary department have significantly contributed to the sluggish growth of the livestock sector.

The union observed that famers and other key stakeholders incur huge costs as a result of the multiplicity of the fees and charges thereby hampering the growth and development of the sector.

"Despite its huge potential for growth, the development of the livestock sector in Zambia has been stifled by a number of barriers. One of the barriers hampering the growth and development of this sector relates to the multiplicity of the fees in the sector," the union stated in a recently released report.

"The government should streamline the different fees and charges imposed on livestock producers, traders and processors to enhance the competiveness of the livestock sector in line with the objectives of the primary sector reform programmes."

The farmers' union further recommended that the fees should not be used as revenue measure and be minimal for the purposes of covering administrative costs in respect of the services rendered to farming communities by local authorities.

"It is plausible that the size and multiplicity of livestock related fees by different government departments in Zambia has implications on the competiveness of the livestock sector," he said.

"In addition to these fees, livestock traders and producers pay other taxes such as excise duty and value added tax. These fees increase the overall cost of doing business in the livestock."

According to the union, stakeholders in the sector pay a minimal K20,000 anti-theft fee for moving a unit animals, veterinary fee for moving cattle and chicken out of town at about K5,000 per animal.

Other charges include meat inspection fees paid to the local councils, dry Kapenta levy, company charges on fresh fish, annual charges for health permit, fees for food handling certificate, fees for fresh fish certificate of origin and zonal charges, among others.



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