During a two-day 2019 Tobacco Industry Seminar in Lilongwe last week, it was revealed that Capital Hill is currently reviewing all statutory levies governing the tobacco sector.

Minister of Agriculture, Irrigation and Water Development Kondwani Nankhumwa, announced the development, stating that the exercise is a result of tobacco growers that are not benefiting from the dwindling levels of profitability, due to the levies that are imposed on them.

He announced that his ministry took heed of the concerns from the industry and the tobacco growers on levels of profitability to tobacco growers. “Government recognises the importance of proper reward to growers for the sustainability of the tobacco sector.” he said. Currently tobacco growers are imposed with the classification levy, research levy, Tobacco Commission (TC) levy, association levy, floor operator levy, withholding tax and hessian levy.

Upon completion of the reviewed levies, a report will be released by the Agriculture Ministry. “It is the expectation of my ministry that the recommended rates shall be complied with in line with the [Tobacco Industry] Act” said Nankhumwa.