Farmers Seek Tax Relief

Written by Samoalivenews staff
Saturday, 01 March 2008
The President of the Samoa Association of Manufacturers and Exporters, Papalii Grant Percival, has called for more tax relief for Pacific farmers, saying it would help to overcome some of the longterm problems faced by the industry. “Farming is an industry for people to get into, and it will grow as Pacific islands need to ensure their food security. In the past five years, the Pacific has consumed more than it produces. “Prices will continue to rise for the next ten years, and even if there are no exports, improving our production is still necessary for our food security,” he said. Currently, unprocessed farm produce like that sold by village farmers at local markets are largely tax free in the region. However, efforts to develop value-added agriculture products for export, or as import substitutes, are hampered by a number of challenges. These include high transport costs in the Pacific, distance from major markets, limited range of products, changing standards and regulations, unstable prices, and changing international markets. Lack of access to capital, newer technology and incentives also make it difficult for farmers to take advantage of market opportunities. Domestic markets could be supported by offering tax incentives to roadside farmers, and removing tariffs on bulk products, packaging and raw materials, among other initiatives, Papalii said. He was addressing an international meeting in Apia, Samoa aimed at discussing the use of a 45 million Euro fund from the European Union for the African, Caribbean and Pacific All Commodities Programme. Pacific farmers also needed to be consulted when governments sought assistance from donors to support the agricultural sector and trade develoment. -Apia, Samoa SPC Comments (0) Subscribe to this comment's feed Write comment Name Email Title Comment

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