Produce tax, levy affecting food prices – POFON

The Plantation Palm Owners Forum of Nigeria (POFON) has decried the imposition of produce tax and levy on some agricultural commodities by State governments across the country. It described the produce tax as antithetical to food security as well as negatively affecting food prices , especially palm oil in the market. The forum’s national chairman, […]

The Plantation Palm Owners Forum of Nigeria (POFON) has decried the imposition of produce tax and levy on some agricultural commodities by State governments across the country.

It described the produce tax as antithetical to food security as well as negatively affecting food prices , especially palm oil in the market.

The forum’s national chairman, Emmanuel Ibru, made the remark in Benin while speaking with journalists shortly after it meeting.

He said the imposition of produce tax would amount to multiple taxations, as farmers and plantation owners are already paying other taxes such as income land use taxes to state governments among others.

He noted that POFON is not against the payment of taxes by members, saying they are ready to pay legal and friendly taxes levied by any State government.

“Instead of produce tax, government at all level should provide an enabling environment for farmers by assisting them with easy access to land, inputs and security to enable them increase their production”.

While lamenting that the issue of the multiple taxations is not given the needed attention, he said the development might undermine the achievement of low and stable prices of palm oil and its by-products in the country.

This, he said may compelled producers to pass the cost of the products to the consumers.

“Government has to look into the issue of multiple taxation. We are battling with a lot of problems such as the high cost of inputs like fertilizers, labour, mechanisation and security. So all these are hindrances to us to be able to expand as rapidly as we would like to.

“Government need to support food production and oil palm which is a crop of long gestation period. The support should include long-term financing at a very low interest rate. It is not only the large-scale plantation owners that require support, small and medium-scale farmers, and the research institutions also need support”.

“So, in all, governments have to cooperate and work with the various stakeholders to enable us to achieve our goals”, he said.

Ibru, who is also the Chief Executive Officer (CEO) of Aden River Estates Limited assured that POFON would continue to play advocacy and intermediary roles to make sure that its members and government can come together to resolve their different positions relating to the produce tax.