Dr Matibiri

Elita Chikwati Agriculture Reporter
ABOUT $7 million that was contributed by farmers through the tobacco levy is lying idle as the Tobacco Industry and Marketing Board is waiting for instruction from Government on how the fund should be utilised.

Government re-introduced a 1,5 percent tobacco levy on sales by growers last year to finance re-forestation activities such as awareness campaigns and training.

Since January 2015, TIMB charged the levy on tobacco growers at a rate of $0,015 of each dollar of the selling price.

The tobacco levy was scrapped in March 2005 to encourage smallholder farmers to produce the crop.

Responding to stakeholders who had queried the whereabouts of the funds at the Closure of the 2015 Marketing Season and National Tobacco Conference yesterday, TIMB chief executive, Dr Andrew Matibiri said the board had failed to make use of the money since Government had to authorise.

“Between March and November, TIMB has been trying to get the Ministry of Finance and Economic Development to get directions on how we can use the money.

“The fund is in the TIMB account but we need guidelines on how the money can be used,” he said.

Dr Matibiri said the board had also made consultations with farmers’ organisations on the best way to utilise the fund.

TIMB chairperson, Mrs Monica Chinamasa expressed concern that farmers were becoming impatient because of lack of progress on the utilisation of the fund.

“Farmers may think their money has been abused. It is wrong that farmers contribute towards a certain project and it does not kick off. Farmers want to see action.

“We are afraid the fund may be channelled to other organisations such as the Forestry Commission. The fund was collected by TIMB and it should be the one that should execute the projects. If other organisations want to have their projects, they should have their own source of money. In this case the fund was contributed by farmers and it should only benefit farmers,” she said.

In the 2015 National Budget, Finance and Economic Planning Minister Patrick Chinamasa said the re-introduced levy would go towards conservation programmes.

He said Government had to introduce the fund because there was an increase in tobacco production, a development that was threatening the environment.

Tobacco production increased from 58,6 million kg in 2009 to 216 million kg in 2014, which is the second highest yield in the history of tobacco growing, highlighting the success of the land reform programme.

Farmers sold 198 million kg of the crop last year.

The number of tobacco growers has also significantly increased from about 29 000 in 2009 to over 80 000 in 2014.

The growth in tobacco production has increased per capita income for tobacco growers, thus creating a base for potential taxpayers.

Stakeholders in the industry welcomed the re-introduction of the levy, especially at a time when the international community was advocating for tobacco that is produced in a sustainable way.

Tobacco buyers now want to purchase tobacco from countries that use renewable sources of energy and are working towards reducing deforestation.

Some stakeholders suggested that the money be used for the development and promotion of energy efficient barns that use less firewood for curing.

The money could be used to promote use of other energy sources such as solar and biogas for curing or subsidising coal and for awareness campaigns on afforestation programmes.

About 83 percent of growers who are either A1 resettled or in the communal areas account for 53 percent of the national tobacco production and they use firewood to cure their tobacco.

The Tobacco Research Board has come up with an energy saving barn to reduce the cutting down of trees for tobacco curing.