Lack of a complementary policy that allows livestock producers to export light hides means around 60 percent of raw hides produced in the country are going to waste as they do not have a market locally. According to the Livestock and Meat Advisory Council (LMAC) economist Reneth Mano, Government should at least consider reviewing the policy that levies a surtax of 0,75 cents per kilogramme of hide exported. Mr Mano said the surtax has basically rendered the small hides, which constitute around 60 percent of raw hides produced in the country, unsellable outside the country.
"Government is currently charging a surtax of 0,75 cents per kg of hide exported, rendering raw hides untradeable. This measure was adopted to encourage the processing of raw hides before export. However, the tanning industry only has capacity to process heavy hides, which constitute an estimated 40 percent of all hides produced. Thus 60 percent of raw hides potentially do not have a local market and remain unutilised," he said.
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