Taxes on agric sector will have minimal effect- GAWU

quist

January 6, 2016 1:10 PM

There has been 1% tax on agric sectors like the agro processing sector; cattle rearing and tree crops that used to enjoy tax holidays of up to 5- 10 years.

Following the imposition of new taxes on various sectors of the economy including the agric sub sector, tax expert Ali Nakyea has said the move will have a negative impact on agriculture.

However, the General Agricultural Workers Union (GAWU) has downplayed any such fears.

There has been 1% tax on agric sectors like the agro processing sector; cattle rearing and tree crops that used to enjoy tax holidays of up to 5- 10 years.

Ali Nakyea had in multiple media interviews maintained that the scrapping of tax holiday will have an impact on the sector.

However, the Union's General Secretary, Edward Kareweh, said the move will not be inimical to the sector, in an interview with Accra based Citi FM.

He said: ” The taxes are minimal; one percent and so on…. will investors necessarily move away from the sector because of the minimal taxes or will the economy would have been better off without placing those taxes in terms of the returns that will come from the sector. ”

” So it may not necessarily be inimical to the agricultural sub sector but we will need to look at the fundamental problems of the sector which relates to production cost, credit, post harvest losses, among others,” he added.

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