The Zimbabwe Revenue Authority (ZIMRA) has effected a ten percent withholding tax on tobacco farmers.
ZIMRA instructed the tobacco industry to deduct the withholding tax from farmers without valid tax clearance certificates.
In a letter copied to tobacco buyers, auction floors, contractors, government ministries, bankers, the Tobacco Research Board and the Tobacco Industry and Marketing Board among other departments, ZIMRA said the withholding tax shall be deducted on every sale by farmers without tax clearance certificates.
The move is in line with the income tax act.
Meanwhile, tobacco sales have now raked in over US$33 million in twelve days since the marketing season began.