Financial officials said that a proposed marijuana export program may eventually accrue about $1.25 billion yearly to the Zimbabwean treasury.
Zimbabwe’s Economic and Finance Development Minister, Mthuli Ncube, said that marijuana production carries a huge potential for generating tax incomes and export receipts. This comes after presenting his 2021 state budget in the country’s parliament.
The revenue projection is based on a program that would put export taxes in three sections;
• Completed and packaged medicinal cannabis oils set for resale will carry a 10 percent tax
• Bulk-extract oils that require more packaging or processing will have a 15 percent sales export tax.
• Dried medicinal marijuana flowers will have a 20 percent tax.
The Zimbabwean government reaped its first produce of legally-grown industrial hemp in 2019 February after its 2018 decriminalization of cannabis cultivation. Rules to govern the industry were announced during this year’s October.
The country’s marijuana legalization controls processing, farming, distribution, possession, sale. Transportation and procurement under decrees governing harmful drugs and scientific and medical products. Cannabis producers have to be licensed by the Health and Child Care Ministry. The use of marijuana for recreational endeavors is illegal in Zimbabwe.
The 5-year licenses available under the stringent government control are for research & breeding, farming, and merchandising. The 37 licenses, limited to Zimbabwe’s legal residents and citizens, have been awarded to the applicants. A reform launched in early 2020 allows investors to hold full ownership of medicinal marijuana licenses.
Only government-approved hemp cultivars can be grown in this African country. However, special permission can be awarded to non-licensed cultivars within research licensing.
Zimbabwe has stated that its cannabis initiative’s approval has been motivated by the plummet of cash crops such as tobacco, which has a history of being the top export product. Zimbabwe’s tobacco farming contributed 11 percent to the country’s 2017 GDP and employed 3 million people.