– with announcement of removal of VAT on agro-chemicals, pesticides and machinery

SCORES of Region Two rice farmers have breathed a sigh of relief after they heard that Value Added Tax (VAT) has been removed from agro-chemicals and pesticides. According to them, this means that they will incur less overhead expenses come next crop.

During the crop, rice farmers usually have to expend monies to purchase chemicals and pesticides, in an effort to reap a high yield.

With the announcement made by Government on Monday, on the removal of taxes, rice farmers said it was a positive move for the industry and thanked President, Dr Irfaan Ali, and his Cabinet for the timely intervention.

According to Kishore Singh, a rice farmer from Golden Fleece who owns a 10-acre rice plot, on average, he spends approximately $30,000 on chemicals.

These expenses, he said, will now be lower.

“It is good when these things happen. With the removal, we farmers can be able to reap the benefits by achieving a lower cost of production,” Singh said.

Safeek Khan, another farmer from Aberdeen, who rents land to cultivate rice and other crops, has been running at a loss due to high overhead expenses. Khan is hopeful that, with the removal of VAT on agro-chemicals and pesticides, he can return to making a profit.

Other farmers were also satisfied with the removal of VAT on agricultural machinery. Mohammed Khan, a large-scale farmer from Vilvordeen said he was most satisfied, having heard about the removal of VAT on agricultural machinery as it will benefit farmers like him.

He said due to the number of lands he cultivates, he often has to purchase machinery to help in the drainage network system. Now, he said he would be able to do his drainage work at less cost.

The removal of VAT on agro-chemicals and pesticides by the government will benefit thousands of farmers in Region Two and throughout the country.

Region Two has 33,000 rice lands under cultivation and, under the APNU+AFC government, many farmers were forced to diversify or stop cultivating due a drying up of markets and heavy taxation on agriculture essentials.