Posted on September, 3, 2019 at 11:13 am
GRAIN millers want the government to reduce power tariffs and abolish a number of nuisance charges imposed on their factories which balloons production costs and render their goods expensive.
Presenting recommendations on behalf of grain processors at a meeting of stakeholders which was presided over by Minister of Agriculture, Food Security and Cooperatives, Japhet Hasunga, Chairman of Maize Flour Milling Machine Owners and Manufactures, Oscar Mnisi said they are struggling to compete because of high costs of production in the local market.
Mnisi said among other nuisance charges which they pay include service levy, fire extinguishing equipment fees, storage charges for maize flour, value added tax and hiked transport costs blamed on taxes.
“We want to have better storage facilities charging reasonable fees because currently, most warehouse facilities available in the country lack the required standards for maize and rice storage while charging highly,” he noted.
He said their main goal is produce high quality maize flour and rice that meets international standards so that the products sell anywhere in Southern African Development Community (SADC) market, East African Community and globally.
Mnisi requested Hasunga to convince his Treasury peer, Dr Philip Mpango to abolish 18 VAT charged on imported industrial machinery and equipment which the millers use to add value to maize and paddy rice before supplying markets.
“18 percent VAT charged on imported irrigation equipments including water pumps, spraying machines, weeding machines and milling machines is frustrating us,” he added while noting that packaging materials are also charged VAT.
He also urged the government to employ and deploy more extension officers to assist smallholder farmers improve quality and quantity of their commodities used by millers as raw materials because currently the quality is very poor.
“Please help us to train farmers on how to produce high quality maize, paddy rice to so that the quality of the finished products is also high hence capable of penetrating any market,” he argued.
Responding to the numerous observation made by the private sector, Minister Hasunga promised action on a number of issues raised which directly fall under his jurisdiction while lobbying his peers in matters relating to other ministries.
“I will sit down with my ministry’s experts and see how we can convince Treasury to waive VAT on imported industrial machinery and equipments as well as fees charged on flour and rice from factories so that we can lower the cost of doing business,” he said. He said his ministry will continue supporting grain millers and traders who work with smallholder farmers to find reliable markets for commodities which get value added.
Source: IPP Media