FG’s commitment, new entrant of farmers boost agric tax revenue to N2bn

The Federal Government renewed commitment to the agricultural sector and the influx of new farmers into the sector have boosted the country’s agricultural tax revenue to N2 billion in 2017.

Data from the National Bureau of Statistics shows that the agric sector tax revenue increased marginally by 6 percent from N1.8 million in 2016 to N2 billion in 2017.

Experts on taxation who spoke to BusinessDay attributed the increase to the renewed government commitment and the new entrant of farmers.

“Government diversification drive since revenue from the oil and gas sector is not meeting up their target and more involvement from companies has widen the tax net and the level of tax collection in the sector,” Sandra Momah, financial secretary, Society of Women in Taxation(SWIT) Lagos chapter said in a phone interview.

Since the renewed commitment of the government, the country has recorded increase in virtually all its crop production and attracted more investments into the sector.

Also, more youths are now finding agriculture attractive and are willing to take it as a profession.

Samuel Agbeluyi, honourary treasurer, Chartered Institute of Taxation of Nigeria said, “the government commitment to the sector has increased the number of activities which has widen the tax collection and net. More farmers are now paying their taxes.”

Experts in the agriculture industry noted that the polices introduced by the government such as the Anchor Borrower’s Programme, fertilizer incentive, and agriculture credit scheme has increase the number of participation in the sector and farming areas.

Bamidele Onibalusi, chief executive officer, Denoli Farms said “Government concentration to the sector has increased the number of educated people and there is more and sensitization on tax collections.

 

BUNMI BAILEY