The Minister of Food and Agriculture, Bryan Acheampong, has hinted that the cabinet is currently deliberating on the possibility of granting tax exemptions for the importation of agricultural inputs.
“The problem is, when prices go up, no matter what we do, our businesses are unwilling to bring prices down and that is the problem. Irrespective, I will do all I can to ensure your request is granted,” he stated during a meeting with the Peasant Farmers Association of Ghana (PFAG).
At the meeting held in Accra, the two parties discussed crucial matters influencing the sector’s growth, including granting tax exemptions for the importation of agricultural inputs.
While awaiting the conclusion of discussions at the cabinet level, Mr. Acheampong said his office has been actively approving requests for exemptions for such inputs by importers, disclosing that as at the beginning of this month, more than 60 exemptions had been granted.
The minister’s disclosure comes on the back of concerns raised by PFAG over the austere economic conditions brought about by the International Monetary Fund (IMF) bail-out.
PFAG’s Executive Secretary, Dr. Charles Nyaaba, told the B&FT that given the country’s unsatisfactory performance in food production, leading to rising food inflation, farmers had anticipated that measures would be implemented to enable farmers to enhance their output, ultimately boosting food supply and mitigating inflation.
“We were expecting to see radical measures that will ensure that the Planting for Food and Jobs policy delivers on its mandate; but that hasn’t happened. Instead, as part of the IMF conditions, the government took off tax waivers that the sector actors were benefitting from. For instance, we used to have tax waivers when you are bringing farm mechanisation products; tax waivers on fertiliser, imported seeds, agrochemicals and veterinary medicines. All these waivers have been taken out,” he stated.
He also said food prices, which continue to drive inflation up, will keep rising unless something is done to lower the cost of farm inputs.
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