ZAMBIA – Zambia National Farmers’ Union (ZNFU) has proposed the introduction of a 25 percent duty on dairy products to protect the local industry from unfair competition from markets such as the European Union (EU).

ZNFU, in its 2016 budget submissions, says currently, the dairy sector is facing competition from cheap and subsidised products from the EU.

According to a statement availed to the Daily Mail by ZNFU media liaison officer Kingsley Kaswende, import duties are a source of Government’s revenue and help in meeting social and infrastructure obligation.

“This unfair competition is a threat to local production and growth of the dairy sector. Introduction of 25 percent duty on milk powder, yoghurt, long-life milk (ultra-high temperature processed and sterilised), and sour milk will offer protection to the sector and create jobs, as well as contribute to nutrition security.

“Government will gain revenue through this proposed tax measure. The local dairy sector will be protected from unfair competition and this will encourage growth and create jobs for people,” the union said.

ZNFU said the tax proposals are aimed at boosting the growth of the agricultural sector, while enhancing Government revenue collection through import duties.

On the reclassify pouch packaging material currently with an import duty of 15 percent, ZNFU has proposed that the duty be reduced to five percent from Zambia Revenue Authority’s (ZRA) current sub-heading.

ZNFU said a reduction in duty on the pouch that is used for packaging long-life milk will help make the product affordable for the lower-income groups.

“The proposal to reduce duty to five percent will make long -life milk affordable to lower-income consumers in Zambia, leading to improved food nutrition security, and will help stimulate economic growth in the country,” the union said.

September 9, 2015;