21-07-2014 09:25 AM | South Africa

End to VAT concession has farmers bleating

Proposals by the Treasury to scrap the value added tax (VAT) concession of a zero rating on goods and services bought by farmers for production purposes will raise input costs 14%.

The sector spends R100bn a year on goods such as fodder, stock and fertiliser. If the VAT concession is scrapped, input costs will grow R14bn a year.

AgriSA senior economist Dawie Maree said on Friday farmers could claim the VAT input tax payments back if they were registered for VAT, but they would carry the cost while waiting for the refund. Many small-scale farmers were not registered for VAT and could not claim refunds.
Full Story : BDlive