Zimbabwe: Zimra Nets U.S $2,2 Million From Tobacco

Source from:  The Herald  05/08/2013

THE Zimbabwe Revenue Authority has collected US$2,2 million from the tobacco levy since the beginning of the tobacco-selling season this year, exceeding slightly its target by 7 percent.

During the same period last year, US$1, 8 million was collected.

Zimra chairman Mr Sternford Moyo, in his first quarter report, said this performance was due to an increase in the amount of tobacco sold this year.

"An increase in the amount of tobacco that was traded at the auction floors this year, as compared with last year, was the major factor in the 23 percent growth in revenue under this tax head," he said.

Zimra exceeded target revenue collections for the first quarter this year by 5 percent to reach US$818, 6 million against a target of US$779,7 million. Mr Moyo attributed the results to improved local capacity utilisation, audits and follow-ups made by the authority.

Tobacco farmers pocketed US$346 million from the sale of over 93,4 million kg of tobacco since the opening of the selling season in February.

According to statistics released by the Tobacco Industry and Marketing Board, 93,4 million kg was sold at an average price of US$3,72 per kg, a price that has been prevailing for three weeks.

To date, about 76 925 growers have delivered tobacco against a total of 88 837 growers who had registered for the 2013 season.

During the same period last year about 66 722 growers had registered.

Last year, agriculture grew by 4,6 percent, led by tobacco, cotton and sugar, with the golden

leaf accounting for 10,7 percent of Gross Domestic Product, increasing its contribution.

Expected increase in tobacco contribution to economic growth stems from the increase in the registration of tobacco farmers which rose from 35 749 in 2011 to 66 245 in 2012.

Zimbabwe has so far earned US$94 million from tobacco exports since the beginning of the year.

Zimbabwe is slowly moving towards regaining its status as one of the world's major tobacco producers. Enditem