The minister of Agro-Industry and Food Security, Satish Faugoo stated that the above measure is a good initiative to further boost both the sugar and non-sugar agricultural sectors. “This VAT refund on agricultural machinery, equipment and tools will benefit some 23,000 sugarcane planters, some 6,000 horticultural producers and some 5,000 animal breeders, including cattle and pig breeders,” he said.
However, everyone does not share this opinion. According to Kreepalloo Sunghoon, the secretary of the Small Planters Association, this measure will not have a big impact. “The law as it exists, will allow the refund only if the planters are ‘VAT registered’ and this is not the case for small planters. The only option that remains is that they do not pay VAT on the equipment that they buy,” he said.
He added that he does not know how exactly the small planters will benefit from this advantage. “The impact of this decision will represent only 1 per cent of the activities of the planters. They do not buy equipment through the year. They buy only once or twice a year so this measure, no matter how good it is, is not sufficient,” said Sunghoon.
He added that there is a lack of new technologies to incite the youth to turn to agriculture. The government is paying particular attention to small planters.
“Additional resources are being provided for the re-grouping of small planters”, he added.