Tax on agro inputs a threat to agribusiness and food security – Analysts

Taxes on agro inputs are a threat to agribusiness and food security – Analyst

CropLife Ghana together with the Ghana Chamber of Agribusiness, the Farmers Association of Ghana (PFAG), the National Seed Trade Association of Ghana (NASTAG) and the Ghana Rice Interprofessional Board (GRIB) have jointly held a press conference to urge the government to restore the tax. exception in Agro-input.

The President on September 12, 2022 approved the Tax Exemption Act 2022, Act 1083 which is intended to regulate the application of tax exemptions and create an exemption regime for imported goods. But agricultural goods and equipment are not included in the list of goods exempted from import duties, this analyst said, contradicting the government’s policy of transforming the economy through agricultural production.

PFAG Executive Director, Dr. Charles Nyaaba in the Press said the delay in granting tax exemptions by the Minister of Finance at the request of the Ministry of Food and Agriculture (MOFA) has bad consequences for the already struggling Agric sector. with high input and machinery costs, high delivery costs, depreciation of the cedi and high transport costs associated with high fuel prices.

“Most farmers in 2022 will make losses, some will have to reduce production and others will sort out alternative businesses. The situation that led to low food supply, high food prices led to high inflation of 54% in December 2022 and this situation will be increased if taxes are reimposed on agro products .

Dr. Nyaaba asked the Minister of Finance, Hon. Ken Ofori-Atta for as a matter of urgency to speed up the request from MOFA and grant Exemption for agricultural commodities and that the Government and Parliament should take another look at the Exemption Act and take steps to include Agricultural goods and equipment which is the key to economic growth.

Representing the importers of Agro-Inputs, Mr. David Ansong, Managing Director-Rainbow Agrosciences reported that unlike the first time when the total cost of imported goods at the Port was within the limit of 5%, now due to the exemptions that are currently paid up to 20-25% which increases the cost of production.

“Government should note that we can only increase additional costs for farmers, but since we all want the Agric sector to grow, we must be patient and hesitant to increase Agro-inputs for losses. Last year when Agro-input costs increased slightly, we saw corn production affected and many farmers go into soybeans etc. because of low cost of production.This also has an effect to affect the unemployment situation in the country because now, if I import less containers, I need less manpower.

Farmers were not left out as the President of the Ghana Rice Interprofessional Board, Nana Adjei Ayeh II, called on the Ministry of Agriculture to take responsibility and pushed the Minister of Finance to grant exemptions. “This is surprising to me as a Government that wants to grow the Agric sector and at the same time you charge levies for Agro-inputs. There will come a time when no one likes to farm anymore because now we are struggling to make a profit and if these Agro-input companies want to double double the price of their products, how can they survive,” he said.

On his part, the Ghana Chamber of Agribusiness led by Mr. Anthony Morrison called on all stakeholders in the Agric sector to step up and fight the tax imposed on Agro-inputs. He gave statistics that the current status of food security in the country is -2% including imports and storage “and the situation worsened when the bank of Ghana removed support for rice imports.

“As an agricultural country, we should not be here doing a press conference. We have about 20 clear days for the production season, so we should have stocked more than 70% of all Agro input requirements in this country, but that is not the case.

The organizer of the conference, Croplife Ghana, led by the Program Manager, Mr. Kadiri Rashad in an interview with the Press stated that it is an association that provides stewardship (safe use training for farmers, input traders and the general public including Security bodies and regulatory agencies) in a bid to promote the industry Agric, they considered it appropriate to gather all these stakeholders who are affected by the tax exemption law so that together they can find a lasting solution to the matter.

CropLife Ghana members representing at the Press Conference include: Chemico Ltd., Yara Ghana Ltd., Dizengoff Ghana Ltd., BASF, Bayer WCA, RMG Ltd, Calli Ghana Ltd, Bentronics Products, Wynca Sunshine Agro, Corteva Ltd, Rainbow Agrosciences, Kumark Ltd, Bon Agro Ltd, Agrohao Ltd, Reiss & Co, Candel Ltd, Agrocrown Ltd, Adama West Africa Ltd, Jubaili Agrotech, Solevo Ltd., Oversees Warehouse Ltd., Afcott Ghana Ltd. and Crop Doctor Ltd.

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