Treasury rejects ministry’s forex proposal

RYAN CHIGOCHE

The Treasury has rejected a request by the Ministry of Lands, Agriculture, Fisheries, Water and Rural Resettlement to levy veterinary services fees in United States dollars, Business Times can report.

In January this year, the Ministry of Lands, Agriculture, Water, Fisheries and Rural Settlement, approached the Treasury on behalf of the veterinary service department, which provides animal and zoonotic diseases surveillance, animal health risk management, and animal health and protection, with the proposal.

But, in a correspondence dated March 16,2021 and addressed to the permanent secretary in the Ministry of Lands, Agriculture, Fisheries, Water and Rural Resettlement John Basera, seen by Business Times, the Permanent secretary in the Ministry of Finance and Economic Development, George Guvamatanga rejected the proposal.

The letter was copied to the Finance Minister, Mthuli Ncube, chief secretary to the President and Cabinet, Misheck Sibanda and C Mhini, the chief director for international Cooperation, Tax and Financial Sector Policy.

“As you are aware, government policy thrust is focused on supporting extensive adoption and use of the local currency on the domestic market. Government should, to the extent possible, price public goods and services in local currency in order to boost market confidence,’ Guvamatanga said.

He added: “Within this context, I wish to advise that the Treasury Government cannot accede to the request to levy fees and charges in foreign currency. Accordingly, the department is expected to continue receiving fees and charges in local currency at the newly approved rates detailed on Annexure A.”

Although the government did not accede to the request, it appears the approved prices in local currency are almost equal to what the Lands Ministry wanted in United States Dollars, using the forex auction system rate.

The Ministry of Lands, Agriculture, Fisheries, Water and Rural Settlement had requested that the price for the permit for the movement of animals be pegged at US$10 from the current fee of ZWL$20.

But, the Treasury pegged it at ZWL$850. This is, however, equivalent to US$10 using the foreign currency auction rate of ZWL$84.6:US$1.

The land ministry wanted the farm inspections for export accreditation for livestock fees increased to US$20 from ZWL$100.

Treasury pegged it at ZWL$1700, which is almost US$20 using the forex auction rate.

Treasury also pegged vaccination fees per animal at ZWL$85. This was an increase from ZWL$10. The Ministry of Land, Agriculture, Fisheries, Water and Rural Resettlement had requested the fees to be pegged at US$1.

The same goes with the general office consultation fee.

A fee of ZWL$850 was approved for cattle and ostriches’ postmortem services after the ministry had requested it to be pegged at $US$10 from the current fee of ZWL$100.

Treasury also reviewed the Helminthology fees for the identification of parasites-adult larval forms to ZWL$2125 from ZWL$250.

The Lands and Agriculture Ministry wanted to peg the fees at US$25.