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Home News SCHLETTWEIN AIDS DROUGHT-STRICKEN FARMERS – EXEMPTS TAX ON IMPORTED GOODS

SCHLETTWEIN AIDS DROUGHT-STRICKEN FARMERS – EXEMPTS TAX ON IMPORTED GOODS

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Schlettwein aids drought-stricken farmers – exempts tax on imported goods

Finance Minister, Calle Schlettwein announced drought relief to farmers who import goods by granting value-added tax (VAT) exemption on some roughage, energy and protein concentrates, until the drought situation is over.

The goods that can be imported tax free are; lucerne, teff grass or other wheat straw, oats straw/hay, maize hay, sorghum hay and silage, cotton oil cake, sunflower oil cake, maize chop, wheat bran, soya oil cake, full fat soya, maize meal, whole maize kernels, molasses, wheat, barley, oats, sunflower hulls, soya hulls, whole cotton seed and maize bran.

“This tax exemption only applies to individual farmers or producers, both communal and commercial, in all regions of Namibia who directly import for own use and not for the purpose of reselling. Retailers and other entities that import these goods do not qualify for this exemption,” Schlettwein said.

In order to qualify for this tax exemption, farmers or producers should provide proof of registration at the Meat Board of Namibia as a farmer/producer registered with the Meat Board or any other legally recognised registration. Farmers or producers should also notify the Ministry of Finance about the importation at least 3 days before the goods reach the point of entry at the border to enable timely customs clearance.

Schlettwein added that the exemption is effective immediately but does not apply to any capital goods imported.

The drought relief measure was granted in terms of Rebate Item 412.11, of paragraph 2 (g) (I) of Schedule V of the VAT Act, pursuant to the state of emergency on drought declared by the President, HE Dr Hage Geingob in May this year.