GOVERNMENT REVERSES SUGARCANE LEVY HIKE AMID PRIVATE SECTOR OUTCRY

The Zambian government has reversed the recent increase in the sugarcane levy following concerns from the private sector over poor consultation. However, authorities have stated that they will review the levy to establish a rate that balances the interests of all stakeholders.

The Mazabuka Municipality had raised the levy from 30 ngwee per ton to K25, a move that would have significantly increased costs for sugar producers. Zambia Sugar, the country’s largest producer, requires approximately 3.6 million tonnes of sugarcane annually, meaning its total levy payment would have surged from around K1 million to K90 million.

The Business Regulatory Review Agency (BRRA) announced the reversal today, saying the decision was made due to concerns from industry players who felt they were not adequately consulted. Board Chairperson David Kapalu spoke at a press briefing held in Lusaka.

“The agency approved the increase after putting into consideration the present value of the K0.30, but at the same time acknowledging the challenges that businesses were facing,” Kapalu said.

“BRRA will continue to engage both Mazabuka Council and the private sector to arrive at an amicable solution.“

The sugarcane levy had remained unchanged since 1986, and while producers welcomed the reversal, they anticipate further discussions on a potential adjustment. Farmers and industry leaders have called for a transparent consultation process to ensure that any future changes do not negatively impact production costs or sugar prices.

The government has not yet provided a timeline for the review but has assured stakeholders that all voices will be considered before a final decision is made.
By Dingindaba Jonah Buyoya