Zimbabwe’s cabinet has approved plans to remove value-added tax (VAT) on fish and fish products in a bid to strengthen the domestic fisheries sector, improve the competitiveness of local producers and reduce the country’s dependence on imported fish, government officials said.
The proposal, which still requires legislative approval before taking effect, would repeal the 15.5 percent VAT currently charged on fish and fish products, with the exception of kapenta, a small freshwater fish that remains a staple food for many Zimbabwean households.
The measure forms part of broader efforts by the government to support local food production, stimulate investment in aquaculture and fisheries, and enhance food security amid growing demand for affordable sources of protein.
In a post-cabinet briefing, authorities said the tax exemption is expected to lower production costs for local fish farmers and processors while making domestically produced fish more competitive against imported alternatives that have increasingly dominated sections of the market.
Officials argue that the existing tax regime has placed local producers at a disadvantage, particularly as the sector grapples with rising input costs, including feed, fuel and transportation expenses.
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“The removal of VAT on fish and fish products is intended to support the growth of the local fisheries industry and encourage increased production,” the government said in outlining the proposal.
The fisheries sector has become an increasingly important component of Zimbabwe’s agricultural economy as policymakers seek to diversify food production beyond traditional crops and livestock.
Aquaculture, especially fish farming, has expanded steadily over the past decade, supported by government programmes, private investment and development initiatives aimed at boosting domestic fish production.
Despite this growth, Zimbabwe continues to rely significantly on imports to meet national demand for fish products, creating challenges for local producers competing with lower-cost imports from regional and international suppliers.
Industry stakeholders have long called for tax incentives and policy reforms to help expand production capacity and improve profitability within the sector.
Economists say the proposed VAT exemption could help stimulate investment by improving margins for fish producers and reducing costs along the value chain.
“The measure is likely to encourage greater participation in fish farming and processing activities,” said an agricultural economist based in Harare. “Lower tax costs could translate into more competitive pricing and increased production over time.”
The government has identified aquaculture as a strategic sector capable of contributing to employment creation, rural development and improved nutrition outcomes.
Fish is increasingly viewed as an affordable and sustainable source of protein, particularly as consumers face rising prices for other food products. Authorities hope that reducing tax burdens on the industry will help make fish more accessible to consumers while supporting domestic producers.
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The exemption, however, will not apply to kapenta, one of Zimbabwe’s most widely consumed fish products. The government did not immediately provide detailed reasons for excluding the product from the proposed tax relief.
The VAT proposal comes as Zimbabwe continues efforts to support key productive sectors through targeted fiscal measures designed to stimulate economic activity and promote local manufacturing and agriculture.
Authorities have in recent years introduced a range of incentives aimed at encouraging domestic production and reducing the country’s import bill.
The fisheries industry has attracted growing attention from policymakers due to its potential to contribute to food security and economic diversification. Several commercial fish farming operations have expanded production in recent years, while small-scale producers have also increased participation in the sector.
Analysts say the success of the proposed tax exemption will depend on whether cost savings are passed on to consumers and whether producers are able to increase output in response to improved market conditions.
The proposal must now proceed through the legislative process before becoming law.
If approved by parliament, the VAT removal could provide a significant boost to Zimbabwe’s fisheries industry, helping local producers compete more effectively while supporting the government’s broader goals of agricultural transformation, food security and economic growth.
