VAT on agrochemicals puts farmers on edge

A natural pest trap. Because of danger of chemicals, experts are advising use of such for controlling pest infestation on the farm.

The Tax Laws (Amendment) Act 2018 is in force. Motorists and commuters are already feeling the heat. Farmers are next on queue. The Act has proposed a 16 per cent VAT on agricultural pest control products.

Now, imagine you’re a farmer, and are using three different chemicals on your farm— one is a herbicide to control weeds in the young crop, then a disease outbreak pops up and you apply a fungicide, then later in the season, you use an insecticide to kill off a pest. That can be expensive especially in the wake of the new charges.