Article
Statutory levies awaiting approval
Published: 02/05/2024
On 28 March and 9 April this year, the National Agricultural Marketing Council (NAMC) received a request from the Wheat Forum, asking for the minister of agriculture, land reform and rural development to, in terms of section 15 of the Marketing of Agricultural Products Act, 1996 (Act 47 of 1996) (MAP Act), approve statutory levies (value-added tax excluded) for various winter cereal commodities, both produced and imported. These levies would be collected and administered by the South African Winter Cereal Industry Trust (SAWCIT) over a period of four years.
The purpose and objectives of this statutory measure are to provide financial support for winter cereal information, research and transformation functions. These functions have been identified as essential and are in the best interest of the winter cereal industry.
The request received unanimous support from the members of the Wheat Forum, based on the recommendation of the Wheat Forum Steering Committee. This support was on behalf of the directly affected groups within the winter cereal industry.
Previously, statutory levies were imposed on wheat, barley and oats (which expired in September 2020) to provide financial support for research projects and quality testing, to supply generic market information to all role-players, and to assist with the development of emerging producers of winter cereals in South Africa. The administration of these levies was carried out by the Winter Cereal Trust.
Since the inception of SAWCIT in 2020, the trust’s primary source of income has been based on voluntary levies collected on wheat, barley and oats. – Agbiz Grain