With a drought looming, the Namibian agriculture ministry has put on hold plans to implement a five percent levy on grain and grain products imports. 
Instead, the agriculture minister John Mutorwa said in a statement Wednesday they would reduce the five percent to 1.4 percent.
The levy had been proposed by the Ministry of Agriculture, Water and Forestry last year after Government had amended the Agronomic Industry Act of 1992.
Mutorwa was advised by the Namibia Agriculture Union (NAU) against going ahead with the plans of the levy, saying it would negatively affect local value addition in the country.
NAU’s concerns were that the levy would impact on other activities such as chicken rearing, which rely on imports of feeds and on livestock.
Announcing the decision, Mutorwa said it is not advisable under the current prevailing climate condition in Namibia to charge five percent levy on grain and fruits and vegetable imports.
He also said after carefully considering the main findings and recommendations of the February 2015 drought assessment report, the levy on the agricultural products might be considered in the future, but only under favourable climate conditions.
“Cognizant of the fact that, in view of the imminent looming drought in the country, some food, particularly maize, may have to be imported to complement the local food reserves; and finally, having empathetically considered the obvious fact that: the five percent levy increase, will most certainly affect the most vulnerable citizens and residents of the country, more adversely,” the minister said. Enditem
Source: Xinhua
