The Business Regulatory Review Agency (BRRA) has withdrawn the approved Mazabuka Municipal Council Cane Levy of K25 per tonne with immediate effect, following complaints and engagements with various stakeholders.
BRRA Board Chairperson, Dominic Kapalu, announced the decision on Thursday during a media briefing in Lusaka, citing gaps in consultation and information as key factors behind the withdrawal.
“The levy had been a subject of debate among stakeholders in Mazabuka, including the private sector, prompting the agency to intervene,” Kapalu said.
He explained that the K25 per tonne levy was determined through a process that included a Regulatory Impact Assessment (RIA), stakeholder consultations, and an evaluation of the present value of the K0.30 Cane Levy introduced in 1986.
“The agency had initially approved the revision from K0.35 to K25 per tonne, a reduction from the K35 per tonne initially proposed by the council,” he stated.
However, Kapalu noted that during re-engagements, the private sector indicated willingness to accept an inflationary adjustment to K0.85 per tonne, using 2017 as the base year.
He further disclosed that in 2017, agreements had been signed between the council and the private sector, setting the Cane Levy at K0.35 per tonne for smallholder farmers and K0.40 per tonne for Zambia Sugar PLC.
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To resolve the impasse, BRRA will continue engaging both the Mazabuka Municipal Council and the private sector.
Kapalu added that the agency is also considering capping the tonnage subject to the levy or introducing different payment thresholds.
Meanwhile, he revealed that Cabinet has approved, in principle, the introduction of a Bill in Parliament to amend the Rating Act of 2018 to address private sector concerns about high property rates.
“The review aims to ensure property rates are supportive of private sector growth,” he said, emphasizing that high property rates had been a major issue raised in past stakeholder engagements.
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