ZIMRA To Introduce Tax For Sheep And Goats
By A Correspondent
The Zimbabwe Revenue Authority (ZIMRA) has intensified its efforts to boost its revenue collection, announcing new tax measures targeting livestock this week. This move has raised concerns among already struggling citizens, particularly farmers, who are now being asked to include the value of their livestock—such as goats, sheep, and other animals—as part of their gross income for tax purposes.
ZIMRA’s latest initiative is in line with Section 8 (1) (h) of the Income Tax Act, which mandates farmers to include the closing stock value of livestock in their income reports. According to the law, livestock includes not only cattle, sheep, and goats, but also pigs, crocodiles, poultry, ostriches, zebras, and horses. These animals are further classified into “stud” livestock, which are kept for breeding, and “ordinary” livestock, which are either born on the farm or purchased for purposes other than breeding.
Farmers must report the value of their livestock at the close of the year, which is incorporated into their gross income for tax calculations. To determine this closing value, farmers can choose from various valuation methods, but these methods must be approved by the ZIMRA Commissioner.
As ZIMRA stated, “The reviewed values must be approved by the Commissioner,” emphasizing the need for approval for any adjustments.
This new move comes at a time when many Zimbabweans are already facing severe economic hardships, and farmers are expressing concerns that these measures could add further strain.
One farmer, who wished to remain anonymous, shared their frustrations: “We’re struggling to feed our families, let alone deal with more government regulations- that will only add to our financial burden.”
Critics argue that this latest tax imposition will only exacerbate the economic challenges faced by smallholder farmers, particularly those who rely heavily on livestock for their livelihoods.
Despite the concerns, ZIMRA maintains that the new measures are necessary to increase government revenue. A spokesperson for the authority stated, “As a country, we need to ensure that every taxable item, including livestock, is properly accounted for in order to sustain public services.”
Farmers, however, remain skeptical, wondering whether this new tax system will further push them into deeper financial trouble. The pressure is mounting for both the government and citizens to find a balance between revenue generation and economic survival in a nation already grappling with inflation and unemployment.
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