HomeEconomyThe government will exempt agricultural products from import VAT

The government will exempt agricultural products from import VAT

Prime Minister Aziz Akhannouch announced on Thursday a new measure aimed at mitigating inflation and the generalized rise in prices, especially in food prices.

The government has just announced the exemption from value added tax (VAT) on the import of several agricultural materials and agri-food products.

The government spokesman, Mustapha Baitas, revealed during the weekly press conference that the government council deliberated on a draft decree, aimed at protecting the national market, and ensuring a good supply of raw materials.

This measure is intended to help control food prices, which have risen exponentially in recent months, due to multifactorial problems of which the lack of rainfall is one of the main causes.

These exemptions will concern phytosanitary products and plant and animal reproduction equipment imported and intended exclusively for agricultural use, as well as other equipment intended exclusively for agricultural use.

He underlined that the government aims, through a set of interventions, to rebalance the production chains, to support agricultural research in order to provide innovative and sustainable solutions to fight against the climatic fluctuations and the water stress which affects the country.

The Head of Government affirmed that these exemptions come within the framework of the rise in agricultural prices, mainly due to two successive years of drought and the high prices of imported agricultural inputs, such as for animals intended for slaughter and products intended for to improve agricultural yields.

This new tranche of measures follows, according to the head of government, other measures taken previously to “protect the purchasing power of citizens”citing the example of the support of transport professionals, the exemption on the import of cattle.

“When the head of government met with professionals and with the presidents of the chambers, the aim was to focus on the real issues related to the financing of agricultural products and price control”assured the government spokesman, Mustapha Baitas at a press conference.

The latter pointed out that the coronavirus pandemic has left its mark on animal production, which has led to confusion in the community and in society. He added that these measures taken by the government have already boosted the import of cattle and protected national animal breeds.

Finally, the government spokesman indicated that discussions are continuing to find other ways of encouraging the agricultural sector and controlling prices, assuring that talks are underway on the subject of sales channels, considering that they have a definite impact on food prices



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