THE Zimbabwe Commercial Rabbit Breeders Association (Zicorba) has hailed the government’s decision to scrap value-added tax (VAT) on livestock as a significant milestone poised to inject new vitality into the agricultural sector.
In order to encourage formal trade of meat products, Finance minister Mthuli Ncube proposed to exempt live cattle, pigs, goats, sheep and bovine semen from VAT in his mid-term budget review presented in Parliament on Thursday.
Ncube had standard rated live animals and meat in his 2024 national budget.
“The removal of VAT on livestock will have several positive implications for our industry and the broader agricultural sector,” Zicorba president Regis Nyamakanga said in a statement.
“Firstly, it will reduce the financial burden on farmers by lowering the overall cost of production. This change is particularly beneficial for small-scale and emerging farmers who often struggle with high operational costs.
“Moreover, the VAT exemption will make it more affordable for farmers to invest in essential livestock and related products, such as feed, veterinary medicines, and breeding stock.
“This will enhance the productivity and profitability of small livestock farming, contributing to the sustainability and growth of the sector.”
The Zicorba chief noted that rabbit farming, in particular, stands to gain significantly from this policy shift.