THE Zimbabwe Revenue Authority (Zimra) only collected five percent of a targeted $3,25 million from the tobacco levy during the first quarter following delays to the start of the selling season.
Zimra collected $176 083,90 in tobacco levy during the three months ended March 31, 2018, representing only 5,41 percent of the $3,25 million the tax collector intended to raise. Collections from the revenue head fell 77 percent below those from the first quarter of 2017, which amounted to $765 745,69.
Zimra board secretary Ropafadzai Majaja said the tax collector had expected the selling season, which opened in March, to start in February and had set a target based on that timeline.
“The tobacco selling season commenced on March 21 2018 and the quarter ended on March 31, resulting in only one week of trading,” Majaja said in a statement to The Financial Gazette last week.
The delay in the start of the selling season was due to the late rains, which forced tobacco farmers to defer planting.
Government introduced the levy, meant for afforestation, in January 2015 on all tobacco farmers at a rate of 1,5 percent in the first year and 0,75 percent in subsequent years.
To date, more than $19 million has been raised but tobacco growers are yet to benefit from the funds.
The Tobacco Industry and Marketing Board, which is responsible for administering the funds, says the money is ring- fenced for reforestation in tobacco growing areas. The board says is awaiting administrative processes and approval from Parliament to commence disbursement.
Tobacco production is expected to increase 5,5 percent to 200 million kilogrammes this year.
Zimra chairperson, Willia Bonyongwe, has said government should urgently address issues that may stand in the way of the country deriving economic benefit from the projected growth.
“There are serious environmental issues to be tackled urgently in the curing process, which stand to negate the economic benefits of this growth. Government should earnestly address these concerns,” Bonyongwe said in a statement accompanying the revenue performance report for the three months ended March 31, 2018.

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