Tobacco Board Considers Levy Reduction to Boost Farmers’ Returns

The Tobacco Board of Zambia (TBZ) is considering reducing the tobacco levy in a move aimed at improving returns for growers and strengthening the competitiveness of Zambia’s tobacco industry.

TBZ Executive Director Robert Mwale said the Board was working on modalities for the proposed review, which forms part of efforts to make tobacco farming more viable and support growth in the sector.

The proposal comes alongside renewed efforts to address nesting and side-selling, practices the Board says undermine tobacco quality, traceability and buyer confidence.

Mwale said improving the quality of Zambian tobacco was essential to securing better market opportunities and protecting the country’s reputation among international buyers.

“Our objective is to make tobacco farming more viable for our growers while protecting the value and reputation of Zambian tobacco,” Mwale said.

He added that the industry needed to address practices that compromise quality and buyer confidence, saying growers must be supported to produce leaf that meets market expectations.

The Board said a more competitive tobacco sector could contribute to job creation, rural incomes, foreign exchange earnings and wider economic growth.

It also linked its proposed interventions to the Government’s Grow Zambia, Buy Zambia and Brand Zambia agendas, which aim to increase domestic production, create jobs and expand business opportunities.

TBZ said it would continue engaging growers, buyers and other stakeholders on regulatory compliance, quality requirements and practical measures to address challenges facing the sector.

However, the proposed levy reduction remains under consideration, with the Board yet to announce a final decision or the details of any changes.