Anthony Johnson, the JLP spokesman on agriculture. - ANDREW SMITH/PHOTOGRAPHY EDITOR
Senator Anthony Johnson, the Jamaica Labour Party spokesman on agriculture, made his contribution to the State of the Nation Debate in the Senate on Friday. Today we present excerpts of his address as part of our special focus on agriculture this year.
IT IS bad enough that the Government does not assist, but when it takes actions to disrupt the system, that is even worse. Last year, the Government announced that agricultural equipment would no longer be zero rated, but would be exempt under the General Consumption Tax (GCT) revenue scheme. It sounded like help. Instead, the policy has caused GCT to be imposed on agricultural supplies, equipment and the provision of services such as haulage of sugar cane. They were tax-free before.
The Ministry of Finance has not responded to requests made for relief despite the fact that the Trelawny sugar crop was delayed and at Bernard Lodge there was a riot by farmers and workers. Incidentally, this is no way to do business, if the taxpayers complain, they are at least entitled to a proper hearing and some sort of consideration. In the meantime, the farm supply stores have to be gently increasing their prices to take care of the additional GCT tax assessment.
To say that the cane farmers especially cannot bear any further burden at this time, after passing through three hurricanes in the past 24 months, is obvious. But the crop is being reaped and some of the contractors have refused to start operations, as they are employed in construction and other areas. My concern is this will lead to continued abandonment of good agricultural land and a further decline in production.
The Inter-American Institute for Co-operation in Agriculture Director General (Dr. Chelston Braithwaite) recently stated that the developed world invests US$1 billion daily in agriculture, while the developing world uses it as a source of taxes.
