VAT on meat threatens pig industry viability

The introduction of the 15% value added tax (VAT) on meat is threatening the pig industry, which saw output increasing by 20,1% last year, an industry executive has warned. Pig industry board director, Andrew Shoniwa said that 167 112 pigs were slaughtered in registered abattoirs in 2016 compared to 139 146 in 2015, an increase of 20,1%.  

He said the tonnage of meat produced through registered abattoirs in 2016 was 11 861,8 compared to 9 222,6 produced in 2015, a 28,6% increase.

The percentage increase in tonnage of pork produced was higher than the percentage increase in numbers slaughtered, indicating that on average heavier pigs were slaughtered in 2016 compared to 2015, Shoniwa said.

Meanwhile, the finance minister Patrick Chinamasa yesterday shelved implementation of Statutory Instrument 20 (SI20), which imposed 15% VAT on rice, meat, potatoes, margarine, cereals and mahewu, telling MPs in a ministerial statement that he first had to consult before introducing the levy.

SI20 became effective on February 1, raising prices of all meat products, and in the process causing a public outcry among consumers and livestock producers.

The Finance minister, however, said he had to get something to tax in order to get revenue to pay salaries and finance other activities, but MPs could be heard interjecting, saying he needed to cut down on the Executive's foreign travels.