Skip to main content

Delay in granting tax exemptions on agric products risk to agribusiness activities


FOUR major groups in the agricultural sector have expressed concerns about the delay by the Finance Minister in granting tax exemptions on agricultural commodities.

The request to that effect by the Minister of Food and Agriculture was meant to make agricultural products cheaper and ensure food security.

The entities are the members and managers of CropLife Ghana, the Chamber of Agribusiness Ghana,the Peasant Farmers Association of Ghana (PFAG) and the National Seed Trade Association of Ghana (NASTAG).

They said the delay had dire consequences for the sector which was already fragile due to global prices and increases in agricultural machinery and agro-inputs.

The phenomenon could lead to high cost of production and further worsen the food security situation in the country.

At a news conference called by the four groups in Accra, the Executive Director of the Peasant Farmers Association of Ghana (PFAG), Dr Charles Nyaaba said, “most farmers in 2022 produced at a loss; some had to scale down their production and others sought alternative business.”

The situation, he said, led to low food supply, high food prices, contributing to a record high inflation of 54.1 per cent in December 2022 and this situation will be compounded if taxes are further imposed on agro-based products.

Stakeholders in the industry used the conference to highlight the impact of the current economic situation on the agricultural sector and the remedy to save the industry.

He called on the government and Parliament to take a swift look at the Exemptions Act and take steps to amend and specifically include agricultural goods and equipment in the list of exemptions.

The decision to have agricultural commodities being considered as general goods and given discretion to a sector minister is a dangerous move which might not augur well for the sector,” he said.

For his part, the Executive Director of the Chamber of Agribusiness Ghana, Anthony Morrison, explained that farmers had about 20 days to the production season and should be having in stock more than 70 per cent of all agro input requirements.

He urged all stakeholders in the agric sector to rise and fight the tax being imposed on agro-inputs.

Production cost

Speaking on behalf of the importers of Agro-Inputs, the Managing Director for Rainbow Agrosciences, David Ansong, said previously, the total expense on imported goods at the port was at a margin of five per cent, however, importers are currently paying between 20-25 per cent, a development which has increased the production of cost.

Last year when the cost of Agro-inputs slightly moved up, we observed maize production was affected and a lot of farmers went into Soya beans and other things because the cost of production was low.

“This also has the repercussions of affecting the unemployment situation in the country because for instance if I import less containers, I will need less workers for work,” he said.

Comments

Popular posts from this blog

MTN Ghana & MTN MoMo CEOs win laurels at Ghana CEO Awards

  The Chief Executive Officer of MTN Ghana, Selorm Adadevoh ,   has been adjudged  CEO of the Year  –  Telecom  at the  2 nd  edition of the  Ghana CEO  Vision  and  Awards   held  in Accra. At the same event, the CEO of Mobile Money Limited (MTN MoMo), Shaibu Haruna was also adjudged CEO of the Year – FinTech Service Provider. Selorm  Adadevoh’s award  is in recognition  of  his   achievements   in the areas of   sustainability, leadership excellence, innovation and others  in the telecoms space  which  has contributed to  job creation to support the  growth of Ghana’s economy. Patrick Afari (r), General Manager, Supply Chain Management and General Services receiving CEO of the Year – Telecom Award on behalf of Selorm Adadevoh Receiving the award on behalf of Selorm, Patrick Afari, General Manager, Supply Chain Management and General Services ,  expressed appreciation to the organizers for the award. He  noted that  th e  award will go a long way to inspire MTN to do more for Ghanaian

EB-ACCION DISBURSES US$15 MILLION

By Fred SARPONG Ecobank-Accion (EB-Accion), a partnership between Ecobank Ghana Limited and Accion International has disbursed amount to the tune of $15 million to over 36,000 borrowers in Micro, Small and Medium Enterprises (MSMEs) sector in the country, since the institution was set up barely six months ago. Frances Adu-Mantey, the Managing Director of EB-Accion disclosed this to Business Week in Accra last week during the official opening of Accion Hub headquarters in Africa. The institution’s current portfolio stands at GH¢4 million. She stated that currently, EB-Accion have over 6100 customers who save with them throughout the four branches of the institution. According to her, in order to improve the services of the institution, Ecobank Share Services center will facilitate the technology aspect of the bank by networking all the branches of EB-Accion. Maria Otero, President and Chief Executive Officer of Accion International said that the center’s staff in Accra will provide supp

Amantin & Kasei Community Bank posts impressive growth, with over GH¢1m profit

 Amantin and Kasei Community Bank, at Amantin in the Bono East Region has posted impressive growth in all the performance indicators during 2022 financial year under review. The bank recorded profit after tax of GH¢1,055,662, representing 35.66% more over the 2021 figure of GH¢778.151. This achievement stemmed out of 49.24% gross income growth from GH¢8,143,526 to GH¢12,153,537. Total deposits of the bank went up by 36.20%, changing from GH¢50,959,848 in 2021 to GH¢69,405,591 in 2022. The bank increased loans and advances by 22.15% from GH¢14,128,017 to GH¢17,257,614. Total assets showed an appreciation of 29.32%, amounting to GH¢77,918,288 as against GH¢60,250,693 in the previous year. On the other hand, the bank posted a marginal increase in short term investments portfolio from GH¢24,439,761 to GH¢26,585,698, indicating 8.78% change. The Chairman of Board of Directors, Amantin and Kasei Community Bank, Dr. John Oduro-Boateng, disclosed this during the 18th annual general meeting of