By Staff Writer
The damaging effects to small farmers and the alia fishing community of new tax incentives for commercial farming were not strong enough to stop Parliament from passing them this week.
New Customs Act amendments passed on Tuesday offers tax incentives to encourage investors to set up bigger commercial farming in Samoa.
The flow on benefits of employment and export earnings are behind the Government decision to forego on customs duty and other tax payments income.
Part of the incentives tax package, allow for investors to bring in farming machinery free of duty.
The worry for the HRPP opposition deputy leader, Lauofo Fonotoe Meti, are the risks of the commercial operations competing against the smaller, individual farmers and alia fishing community.
“It’s normal in overseas trading for the markets to become flooded, when that happens our commercial farmers will end up swamping our Fugalei Produce market and everywhere else locally,” Lauofo worried.
“Our small farmers and fishing alia community cannot compete against these bigger commercial operations and that is not good – they will need protection when that happens.
The opposition deputy leader’s fears were added to his overall reservations at the loss of much needed Government revenue or if when the commercial farming venture fails once the incentives grace period runs out.
“The removing of customs duties have to be done carefully, it is Government revenue taken away from our education, health, roads and other national developments the country needs.”
Several opposition members shared the same worries while it is too early yet to work out the total loss of revenue to Government.
A compensating offer for Government to consider is to help and also encourage the smaller, individual farmers and fishermen with the offer of incentives they can qualify for.
“One example are customs duty exemptions to make it easier for families overseas to send home a truck to help the farmer meet the needs of the plantation,” one of the opposition MPS offered.