PFAG Pushes for Predictable, Low-Burden Tax System to Strengthen Farmer Competitiveness
Executive Director of the Peasant Farmers Association of Ghana (PFAG), Bismark Owusu Nortey, has called for a more predictable and flexible tax regime for the agricultural sector, arguing that the current system imposes undue burdens on smallholder farmers and undermines the competitiveness of agribusinesses.
Speaking during the NorvanReports, Economic Governance Platform (EGP), and Ghana Anti-Corruption Coalition (GACC) X Space Discussion on the theme “Ghana’s Tax Paradox: Can the VAT Reforms Deliver Relief While Expanding Revenue?”, Mr Nortey explained that a pro-farmer tax system must be clear, stable and designed to accommodate the seasonal and price-sensitive nature of agriculture.
“You know the pro-farmer tax system is not really a specific one but it may be based on existing tax and accounting frameworks… farmers want a system that is certain, predictable, flexible and straightforward, and one that does not put a lot of burden on smallholder farmers or agribusinesses,” he noted.
According to him, frequent price distortions—often driven by tax-related cost build-ups—pose a major challenge for farmers who structure their production budgets based on expected input costs.
“For the farmer, what he or she is concerned about is the price. So when you go today and fertilizer is GH¢420 and the next day it is GH¢450, you are creating a distortion that affects production,” he said.
High Taxes on Imported Agric Inputs
Mr Nortey also raised concerns about the high tax burdens faced by agribusinesses involved in imports and exports, stressing that excessive charges at the ports ultimately transfer high costs to farmers.
Citing an example, he disclosed that one agribusiness importing vaccines faced nearly GH¢200,000 in combined taxes and clearing charges on a container valued at about GH¢300,000.
“For such a person, that is a big disincentive. If the person eventually imports, that additional cost has to be passed on to the farmer. That system makes it cumbersome for farmers and agribusinesses,” he said.
He warned that a tax structure that fails to support affordability risks eroding the competitiveness of Ghanaian farm produce both locally and internationally.
Call for a Clear, Competitive Tax Framework
Mr Nortey stressed the need for a transparent and non-restrictive tax framework that enables agribusinesses to plan effectively and ensures that final input prices remain competitive.
“What we should be targeting is a tax system that is not a closed carton… a tax system that makes it easy for agribusinesses to plan, and one that ensures that when the final input is procured by the farmer, it is at a rate that makes the farmer competitive,” he stated.
He maintained that Ghana must design a tax regime that supports farmers to produce food at prices that can compete with agricultural products from other parts of the world.
His comments were made in the context of the 2026 Budget presentation by the Finance Minister, which includes major VAT reforms aimed at reducing the cost of doing business and improving tax efficiency.
