Parliamentary Committee to Advocate for Tax Exemption on Agricultural Machinery

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Windhoek: Chairperson of the Parliamentary Standing Committee on Agriculture, Environment and Natural Resources, Paulus Mbangu, has announced the committee’s plan to propose the exemption of tax on agricultural machinery and equipment. Mbangu made the statement on Monday during a committee visit to the Vhungu Vhungu Green Scheme in the Kavango East Region.

According to Namibia Press Agency, Mbangu emphasized that agricultural production should not be costly and that reducing associated expenses is critical for ensuring food security in Namibia. The Parliamentary Standing Committee on Agriculture, Environment and Natural Resources is a key oversight body in Parliament, responsible for reviewing legislation, monitoring policy implementation, and investigating issues affecting agriculture, the environment, and natural resources.

Mbangu explained that the committee had previously visited the region in 2020 and again in 2022. Following those visits, they met with the Ministry of Agriculture and submitted a series of recommendations. The latest visit aimed to verify whether those recommendations had been implemented. He urged the government to adopt a more practical and results-driven approach, noting that the committee’s forthcoming report will be comprehensive and will include insights from their recent visit to Egypt.

Mbangu stressed the importance of making Namibia food secure, noting the lengthy discussions on the issue over the past 35 years. He also addressed concerns about the high electricity costs faced by green schemes, mentioning that a former minister had proposed to the Cabinet that NamPower should supply electricity directly to these projects. Mbangu stated that the committee would follow up with the ministry to assess the status of that proposal.

The chairperson further highlighted that agricultural production should not be expensive. He pointed out that in many countries, agricultural equipment is tax-exempt, and emphasized that if Namibia is importing agricultural machinery, VAT should not be applied, as it makes farming too costly.