Farm vehicle tax concession is not for sport units

The duty concession on farm vehicles is available only to registered farmers involved in agricultural production and not for luxury or high-end sport vehicles as many people seem to think, Kevin Condappa, acting director of agricultural services in the Ministry of Industry, Commerce, Agriculture and Fisheries, recently pointed out.

"The matter of incentives, the issue of duty concession on farm vehicles is something that I have to treat with every day. Persons want to access 20 per cent duty concession on farm vehicles and you see requests coming in for vehicles 15 years, vehicles [like] Honda Ridgeline," he said.

"No, no, that is just not going to work. We have prescribed criteria for a farm vehicle and accessing that duty concession. We will allow farmers, bona fide farmers that are registered with RADA (Rural Agricultural Development Authority), and it's not just a matter of you registering today and accessing the duty concession. No, you have to show without any doubt that you are a bona fide farmer involved in farming," Condappa told an agricultural information forum hosted by JAMPRO at the Terra Nova All-Suite Hotel, in St Andrew.

"The concession is basically a reward for those engaged in production, not for someone who wants to go and sport a 2018 Hilux, and it is reserved for those actively engaged in farming," he stressed, going on to set out the criteria, as follows:

- Farmers need to be showing annual return of at least $250,000;

- Those involved in traditional crops such as coffee need to be operating on at least three acres of land.

- Fish farmers need to have at least one acre of ponds.

- Food crops on at least three acres.

- Beekeepers should have at least 125 colonies.

"Added to that, you need to submit your Tax Compliance Certificate, and your land title along with it, and if that's not possible for your title, then your lease agreement for more than five years," Condappa further explained.

"You are entitled, if you're a small farmer of 1-10 acres, to one duty concession every five years. If you are a medium-size farmer - 11-50 acres - you are entitled to two vehicles every five years. If you are a large farmer - 50 acres and over - you can access three vehicles every five years and just to specify: the vehicles, trucks, commonly known as pickups - open-back pickups that is, using gasolene. These are restricted to up to 3,000cc rating. For diesel trucks - open-back pickups, the restriction goes up to 3.200cc ratings."

C. S.