The Federal Government has been urged to provide tax holidays for farmers, especially smallholder farmers, and exemption for certain agribusinesses to address the current food crisis confronting the country.

While speaking at the 7th edition of the Blakey’s National Tax Conference, in Lagos, on a lecture titled: “Activating Agricultural Revolution in Nigeria Through Tax Incentive: Unlocking the Potentials for Economic Growth and Food Security,” the guest speaker, Mr. Tony Chinwe, said over 80 per cent of the country farmers are smallholders, who also account for 90 per cent of Nigeria’s agricultural produce, adding that such incentives would encourage them to boost food production, contribute more to the nation’s economy and enhance food security.

Chinwe proposed, among other measures, a five year tax holiday for new agricultural businesses, three year holiday for existing businesses expanding operations, and holiday for agricultural processing and value addition.

“10 per cent of reduced corporate tax rate for agricultural businesses, five per cent for smallholder farmers and five per cent reduced VAT rate for agricultural inputs.

“Exemption from import duties on agricultural equipment, exemption from VAT on Agric inputs and depreciation allowance for agricultural assets; 20 per cent investment tax credit for agricultural infrastructure and 15 per cent investment tax credit agricultural research and development.”

Chinwe further admonished the Federal Government to draw some lessons from the incentive models and success stories of Kenya, Ghana and South Africa, draw implementation and eligibility plan that would increase agricultural production and target the creation of 100,000 more jobs in the sector.

He summed: “Nigeria is abundantly gifted by nature to feed the whole of Africa. Tax incentive can drive agricultural growth and development, effective implementation requires careful planning and management.”

The chairman of the conference, Engr. George Irechukwu, in his speech, said taxation plays a critical role in shaping global and local economies. He said the aim of the conference was to highlight the impact of the Federal Government’s agricultural initiative, brainstorm on a creative tax incentives that would bring desired change, as well as fashion out framework for their implementation.

Irechukwu added: “As we gather here today, our world and indeed our nation is facing unprecedented economic challenges. This seminar provides a timely opportunity for us to explore and harness contemporary ideas and solutions to current developments, challenges, and opportunities in taxation, similar and relevant to our present situation.”

Delivering the keynote address titled: ‘The Catalyst of Change: Agricultural Revolution in Nigeria – The Tax Incentives Edge,’ the host, a renowned tax consultant Chief Blakey Okwudili Ijezie, made a compelling case on how targeted tax breaks could fuel growth in the industry.

He noted that by reducing tax burdens, farmers and agribusinesses are empowered to invest more in their operations, thereby increasing productivity and competitiveness.