Tanzania: Farming Machinery to Cost Less

THE government has been commended for abolishing Value Added Tax (VAT) on imported agriculture equipment as the move will enable more farmers in the country to engage in improved farming practices.
The Chief Operating Officer of Farm Equip (T) Ltd, a company that imports and supplies agriculture machines, Mr Rattan Singh, told the 'Daily News' that the government's decision was welcome as small-scale farmers are now in a position to own the equipment.
He said that his company was now planning to supply more such machines particularly small tractors popularly known as power tillers whose demand has increased in recent years. "We praise the government on this noble move.

The 18 per cent VAT previously imposed on farming tools could stymie the envisaged agriculture revolution which is sought in most parts of the country," he said. The company, which supplies Kubota power tillers and whose prices are slightly lower than those attached to other machines, challenges the government to support individual farmers to manage them.
In the last two years, he said, the company supplied more than 500 power tillers to farmers in Mbeya, Morogoro, Dodoma, Rukwa and Iringa regions. Except for Dodoma, these regions are considered to be the national bread basket.

The company's General Manager, Mr Naushad Khan, said that most of the farming machines are bought on loan basis by a number of Savings and Credit Cooperative Societies (SACCOS) in Mbeya, Morogoro, Dodoma, Rukwa and Iringa regions.
He added that his company now plans to supply the equipment to other regions. The company targets Katavi, Ruvuma, Lindi and Mtwara as a second priority. "We are equally participating in Kilimo Kwanza by making sure that farmers get modern and affordable machines to sustain their agricultural undertakings.
The only problem we face is that very few individual farmers can afford to buy these machines," he said. Farm Equip is one of the private companies which were licensed by the government to import, sell and supply agri-merchandize gear to farmers.

Currently due to the fact that they are sold on loan basis, each power tiller costs 6.3m/- but the price could probably come down if a larger number of SACCOS and individual farmers could manage to buy them on cash basis.
The Minister for Agriculture and Food Security, Engineer Chistopher Chiza, announced recently in Parliament that his ministry had set aside 7.4bn/- this financial year which will be dished out as loans to farmers through the Input Fund.