Nigeria government has been urged to develop a strategic Agricultural tax incentive as a means of boosting production and achieving food security in the country.
The advocacy was the focus of a lecture delivered by Mr Tony Chinwe at the 7th edition of the Blakey’s National Tax Conference.
The conference was held Thursday, October 10, at the Banquet Hall, Banex Mall, Lekki, Lagos state.
It was convened and hosted under the auspices of Blakey Ijezie Foundation, and chaired by Engr. George Irechukwu.
Chinwe in the lecture with the title ‘Activating Agricultural Revolution in Nigeria Through Tax Incentive: Unlocking the Potentials for Economic Growth and Food Security,’ advocated for tax holidays for farmers, especially Smallholder farmers, and exemption for certain Agribusinesses.
He observed that over 80 percent of Nigerian farmers are smallholder farmers, who also account for 90 percent of Nigeria’s agricultural produce, adding that such incentives would encourage them to boost food production, contribute more to the nations economy and enhance food security.
Chinwe proposed, among other measures, a five year tax holiday for new agricultural businesses, three year holiday for existing businesses expanding operations, and holiday for agricultural processing and value addition.
He added: “10% reduced corporate tax rate for agricultural businesses, 5% for Smallholder farmers and 5% reduced VAT rate for agricultural inputs.
“Exemption from import duties on agricultural equipment, exemption from VAT on Agric inputs and depreciation allowance for agricultural assets; 20% investment tax credit for agricultural infrastructure and 15% investment tax credit agricultural research and development.”
Chinwe further admonished the federal government to draw some lessons from the incentive models and success stories of Kenya, Ghana and South Africa, draw implementation and eligibility plan that would increase agricultural production and target the creation of 100,000 more jobs in the sector.
He summed: “Nigeria is abundantly gifted by nature to feed the whole of Africa.
“Tax incentive can drive agricultural growth and development, effective implementation requires careful planning and management.”
Chairman of the event, Irechukwu, in his remarks said the event was an excellent opportunity for learning and networking, adding that taxaton plays a critcal role in shaping global and local economies.
He noted that the aim of the conference was to highlight the impact of the current federal government’s agricultural initiative, brainstorm on a creative tax incentive/ reforms that would bring desired change as well as fashion out framework for their implementation.
Irechukwu added: “As we gather here today, our world and indeed our nation is facing unprecedented economic challenges.
“This seminar provides a timely opportunity for us to explore and harness contemporary ideas and solutions to current developments, challenges, and opportunities in taxation, similar and relevant to our present situation.”
Delivering the keynote address titled ‘The Catalyst of Change: Agricultural Revolution in Nigeria – The Tax Incentives Edge,’ the host, a renowned tax consultant Chief Blakey Okwudili Ijezie, made a compelling case on how targeted tax breaks could fuel growth in the industry.
He noted that by reducing tax burdens, farmers and Agribusinesses are empowered to invest more in their operations, thereby increasing productivity and competitiveness.
The theme for this edition of the conference is: ‘Agricultural Revolution In Nigeria – The Tax Incentves Edge.’
The conference was massively attended by Nigeria’s prominent actors in tax and agriculture sectors.
•Photo Caption: Representatives of the Government of Anambra State at the 7th Edition of BLAKEY’s National Tax Conference, with the Chief Host (Chief Blakey Okwudili Ijezie, FCA); the Event Chairman (Engr. George Irechukwu, FCA); the two Guest Speakers, Engr. Anthony Chinwe, and Mr. Charles Fakrogha; and the IT Assistants, Chief Ernest Molokwu (extreme left), and Engr. Leo Alimba (extreme right)
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