Tobacco Board Plans Levy Cut to Improve Grower Incomes

Tobacco Board of Zambia (TBZ) says it is working on modalities to review and reduce the tobacco levy, a move aimed at enhancing the viability of tobacco farming, improving grower returns, and strengthening the competitiveness of the industry.

TBZ Executive Director, Robert Mwale said the proposed review forms part of the Board’s broader efforts to support farmers, promote industry growth and ensure that tobacco remains an attractive agricultural enterprise.

He stressed that TBZ is also intensifying its focus on addressing nesting and smuggling (side-selling), practices that undermine leaf quality, traceability and buyer confidence.

Mr. Mwale stated that producing clean, properly graded and traceable tobacco is essential to securing better market opportunities, protecting the reputation of Zambian leaf and strengthening the country’s position in international markets.

He said the Board was determined to build an industry that delivers value to growers while maintaining the quality standards demanded by the market.

“Our objective is to make tobacco farming more viable for our growers while protecting the value and reputation of Zambian tobacco. We are working on modalities to review and reduce the levy, but we must also address practices such as nesting and side-selling that compromise quality and buyer confidence,” he said. “Zambia must compete on quality, and our growers must be supported to produce leaf that earns the confidence of the market.”

He added that improved tobacco quality and responsible industry practices were critical to advancing the Government’s Grow Zambia, Buy Zambia and Brand Zambia agendas.

“A competitive tobacco sector can contribute to job creation, rural incomes, foreign exchange earnings and national economic growth.  By improving production standards and strengthening market confidence, Zambia can enhance the value of its tobacco exports and create opportunities across the industry,” Mr. Mwale stated.

According to Mr. Mwale, the proposed interventions align with the Government’s Grow Zambia Agenda, a five-year national development blueprint aimed at accelerating economic growth, increasing domestic production, creating jobs and expanding business opportunities by 2031.

The agenda is anchored on the 10-10-5-3-3-1-1-1 targets, which include producing 10 million tonnes of maize, generating 10,000 megawatts of electricity, attracting five million tourist arrivals annually, producing three million tonnes each of copper and soya beans, producing one million tonnes each of wheat and sugar, and generating US$1 billion in beef export earnings.

He said for TBZ,  this national vision presents an opportunity to contribute through increased tobacco production, improved productivity, quality enhancement and export competitiveness.

“By supporting growers, promoting responsible farming practices and strengthening the reputation of Zambian tobacco in international markets, TBZ seeks to ensure that the tobacco industry contributes meaningfully to job creation, rural incomes, foreign exchange earnings and inclusive national economic growth,” he said.

He assured that TBZ will continue engaging growers, buyers and other stakeholders to promote regulatory compliance, improve awareness of quality requirements and identify practical measures to address challenges affecting the sector.

“The proposed levy review remains under consideration as TBZ works towards interventions that support growers while safeguarding the long-term sustainability and competitiveness of the industry,” Mr. Mwale added.

The Executive Director, reaffirmed the Board’s dedication to a transparent, fair and growth-oriented tobacco industry that benefits growers, strengthens buyer confidence and contributes meaningfully to Zambia’s economic development.

This is according to a statement issued by TBZ Corporate Affairs and Communication Manager, Lee Haamunji.