Zimbabwe registers duty-free farming equipment

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Zimbabwe Revenue Authority (Zimra) listed agricultural equipment exempt from import duties and value added tax (VAT), while the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development introduced a product crop insurance for Pfumvudza/Intwasa beneficiaries.

The move is part of the government’s attempt to boost agricultural production. Machinery such as manure spreaders, fertilizer spreaders, hay balers, combine harvesters, egg sorting machines, feed preparation machines, tractors and poultry incubators would be imported free of duty and VAT. Importers were required to hire customs agents registered with the tax collector.

“The goods are treated as commercial imports. Customs clearance must be done by means of an entry document and a tax clearance certificate is necessary to be exempted from paying the flat rate tax. Failure to produce such a product results in a flat tax of 10% of the value for customs purposes,” Zimra said.

The decision was very well received by farmers who said it supported their efforts to develop the agricultural sector by easing the means of production and easing the burden of most farmers who desperately needed equipment and technologies. modern. Ms Martha Macheke from Banket said it was a relief to those importing machinery to improve agriculture.

Reviving the agricultural sector

“Adding value as well as mechanization are both essential for us to be sustainable. This type of equipment industrializes and modernizes our agriculture through the development of innovation. Mechanization, for example, leads to precision farming that maximizes efficiency, reduces post-harvest losses and increases the profits a farmer can make,” she said.

The government had made huge efforts to revive the agricultural sector by encouraging the importation of machinery. On the other hand, the Area Yield Index Based Crop Insurance, which will be technically led by Pula Advisors, is intended to protect farmers in Pfumvudza from the heavy impact of the vagaries of climate change.

Starting from the 2021/22 agricultural season, the ministry will implement a pilot exercise with financial support from development partner, Mercy Corps Zimbabwe. Pula Advisors was engaged by Mercy Corps AgriFin Digital Farmer (ADF) to provide technical assistance for the design and implementation of comprehensive area yield index assurance on inputs distributed under the Pfumvudza initiative in Zimbabwe.

Mercy Corps’ AgriFin Digital Farmer (ADF) is a two-year, $5 million initiative that aims to support the expansion of high-impact digital services for at least one million farmers and expand services to five million additional smallholders. farmers in partnership with the Gates Foundation and Bayer.

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