GAWU demands removal of new taxes on agric industry

The General Agricultural Workers Union (GAWU) is demanding for the removal of new taxes imposed on the agric sector following the implementation of the new income tax law.

GAWU fears the new taxes if not removed will hamper the growth of the sector and will reduce investment into the sector.

In a statement to Citi Business News GAWU said government must reconsider the imposition of the new taxes on the sector or risk crippling it.

Under the new law income tax law agro processing businesses which are conducted wholly in the country and prior to the new law had a 5 year tax holiday, will pay 1 percent tax during the 5 year tax holiday and subsequently pay the standard 25 percent corporate tax.

The same goes for cocoa by product business conducted wholly in Ghana as well as business in tree crop farming that is those in coffee, oil palm, shea-butter and coconut as well as cash crop or livestock excluding cattle.

Earlier Tax analyst Abdallah Ali Nakyea had told Citi Business News he fears the new law will have a negative impact on the agric sector.

‘ There were sectors that were enjoying  the tax holidays completely like the agro processing sector; cattle rearing, tree crops, you had ten years tax holiday now if you look at this new law, whoever used to enjoy these tax holidays will be required to pay one percent. This figure may not be significant in terms of a thousand but the same is huge in terms of hundreds of thousands and it will have an impact on those expected to pay.”

GAWU says the current state of the sector requires more support and government’s move to remove these support is unacceptable.

Gawu says the least government can do is to maintain existing support while exploring measure to make them more effective.

The union adds the neglect of agriculture has crippling implication for food security and national development.IMAG0051

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