Farmers eagerly await implementation of zero tax on importation of agricultural machinery and inputs

Local farmers are increasingly concerned about the high cost of agricultural inputs in the recent past.

Some farmers have been forced to decrease the size of their farms as a result, which has decreased productivity.

But how are farmers benefiting from the tax remission on agricultural gear and input imports announced in the 2024 budget? 

Barkisu Tahiru has been growing rice on her 3-acre farm in Offinso, Ashanti, for decades. However, due to the input's scarcity and expensive cost, she is now forced to revert to utilizing manure.

In addition to becoming costly, the inputs are getting harder to get. We are suffering financially as a result of the costs double in just a single year. Due to rising costs, Barkisu said, "as smallholder farmers, our only option is to reduce our farm size."

The disconcerting situation is likely to have an impact on Ghana's quest to strengthen food security.

The Minister of Finance, Ken Ofori-Atta, indicated in his presentation of the 2024 budget that, government will grant tax exemptions on the importation of agricultural machinery equipment and inputs.

“If this is implemented and the prices of the inputs decline, then we can expand and also sell the produce at a cheaper price”, Adu Gyamfi, a farmer, assured. For importers and dealers of farm inputs, the intervention is refreshing and timely, looking at the impact of the increasing cost of the inputs on farmers.

“The inputs are very expensive because of the taxes on them, and most smallholder farmers are unable to buy. Now that the government wants to revert to the zero tax on importation of agricultural machinery and inputs, it will definitely lead to a reduction of prices and will come as a relief to the farmers”, Chief Executive Officer of Bentronics Agrochemicals, Bernard Kwasi Boampong indicated.

According to a Ministry of Finance study, Ghana imports $2 billion worth of critical food items annually on average.

With Ghana hoping to cut down on the importation of agricultural produce, there is a need to make farming supportive to encourage farmers to enhance productivity.

Photocredit: Ibrahim Abubakar, 3News.