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Farmers want tobacco levy scrapped

Fidelity Mhlanga ·

FARMERS have made fresh calls for the scrapping of the tobacco levy going into the next season, as $23 million collected under the fund since 2015 has not been disbursed to serve its purpose.

In January 2015, government introduced an afforestation levy on all tobacco farmers at a rate of 1,5% in the first year and 0,75% in subsequent years to finance regreening initiatives in the country.

The afforestation fund comes from a 0,75% tax on gross sales levied on the country’s 80 000-plus tobacco farmers who rely on wood to cure their crop.

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