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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.
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Rabbits are a versatile and highly productive source of meat, which can be produced with relatively low input costs compared to other livestock.
"By making rabbit farming more economically viable, we can tap into the potential of this sector to create employment opportunities, particularly for rural communities, and contribute positively to Zimbabwe's GDP [gross domestic product] ," he said.
Additionally, Nyamakanga said the removal of the tax aligns with the government's broader efforts to support and modernise agriculture through various incentives and supportive measures.
This includes duty-free imports of agricultural equipment, which further eases the means of production for farmers and enhances mechanisation and productivity in the sector.
"The VAT exemption on livestock is a commendable step towards revitalizing the agricultural sector. It provides a crucial lifeline for small livestock farmers, encouraging investment, boosting production, and fostering economic growth," he said.
"We, at Zicorba, fully support this initiative and look forward to working with all stakeholders to ensure its successful implementation and maximize its benefits for the agricultural community."
Zicorba was established in July 2020 and has quickly emerged as one of the most dynamic and successful farming associations in Zimbabwe, with chapters established across all ten provinces of the country.
The association’s primary goal is to facilitate the transition into the cash economy and uplift the livelihoods of 1,5 million households in the country through rabbit farming.
The group secured investment for the establishment of the country's first rabbit abattoir in May 2021, which has since become one of the largest on the African continent.
This strategic initiative ensures the hygienic processing of rabbit meat, enhancing the quality and safety standards of their produce.