Maravi

ZNFU calls for effective use of agric allocation

ZNFU calls for effective use of agric allocation
Written by Florence Bupe
Tuesday, February 03, 2009 9:07:08 AM

THE Zambia National Farmers Union (ZNFU) has called for an effective use of increased funding to the agricultural sector for its development.
And ZNFU has commended the government’s decision to zero rate value added tax (VAT) on agricultural equipment.

ZNFU president Jervis Zimba said increased funding to the agriculture sector from 5.8 per cent in 2008 to 7.2 per cent of the total budget was a step in the right direction in the achievement of the Comprehensive African Agriculture Development Programme (CAADP) objectives.

The government this year has allocated slightly above K1 trillion to the agricultural sector, up from around K800 billion given in last year’s national budget. This year’s figure is however still below the agreed 10 per cent allocation of the total budget as contained in the Maputo Declaration on agriculture which Zambia is signatory to.

“It is important to note that increased funding to agriculture is one thing but the application of these funds and implementation is another, and this is the area where we have lagged behind as a country,” he said.

He urged the government to prioritise the control of livestock diseases as a way of enhancing the sub-sector.

Zimba further advised more prudent application of the fertilizer support programme, which had taken up 39.7 per cent of the agricultural budget.

“The resources put to the FSP at 39.7 per cent of the total agricultural budget are very significant, and if put to good use, can achieve increased production,” he said.

And Zimba said the move to zero rate VAT on agricultural equipment would reduce costs for small scale farmers who were unable to recover VAT.

“The union is pleased that government adopted the full list of agricultural equipment and spares that we proposed for VAT zero rating in our budget submissions. This will assist greatly in costs low for the farmers,” said Zimba.

Labels: 2009 BUDGET, CAADP, JERVIS ZIMBA, ZNFU

posted by MrK @ 9:07 AM