Delay in Tax Exemptions Threatens Ghana's Food Security – CropLife Ghana
Mr. Kadiri Rashad, Programme Manager - CropLife
CropLife Ghana, a key association in the agricultural sector, has raised concerns over delays in implementing tax exemptions on agricultural inputs, warning of potential threats to the nation's food security.
Read full articleThe association emphasizes that the success of the Planting for Food and Jobs Program (PFJ 2.0) heavily relies on affordable agricultural inputs. However, delays in implementing tax exemptions have led to increased import charges, making farming financially risky for stakeholders.
Kadiri Rashad, Programme Manager of CropLife Ghana, highlights the high costs of inputs like pesticides and fertilizers, exacerbated by elevated global prices, as major challenges. Additionally, the high reference point values set by the Ghana Revenue Authority (GRA) on pesticides further inflate import costs.
According to Rashad, these delays have caused shortages of essential agricultural supplies, discouraging farmers from planting crops and potentially leading to food shortages.
CropLife Ghana urges the government to prioritize food security by expediting the implementation of tax exemptions on agricultural inputs. They call on the Ministry of Finance to grant the tax exemptions for pesticide importation as outlined in the 2024 national budget.
The association's plea comes amidst existing concerns over food insecurity in Ghana. A 2022 report by the Food and Agriculture Organization of the United Nations (FAO) indicates that a significant portion of the population in West Africa, including Ghana, experiences moderate to severe food insecurity.
CropLife Ghana's appeal aligns with previous discussions between the government and agricultural stakeholders. Minister of Food and Agriculture Bryan Acheampong had previously mentioned the government's consideration of tax breaks on imported agricultural supplies during a meeting with the Peasant Farmers Association of Ghana (PFAG) in August 2023.
While the decision awaited cabinet approval, Acheampong disclosed that his office had already granted over 60 exemptions on a case-by-case basis by the beginning of that month.
