Vice President Dr. James Wani Igga. | File

The vice president in charge of Economic Cluster has suggested tax exemption on agricultural inputs and agriculture-related goods to boost local production in the country.

Dr. James Wani Igga made the remarks Wednesday at the validation workshop on one-stop shop guidelines and investment opportunities’ mapping in the Republic of South Sudan.

Dr. Igga said empowering agricultural enterprise will enhance local production and contribute to the economic growth.

“The payments of minimum tax by companies that makes small or no profits at all in Agro-alike businesses should not be applied, this will attract more investors in this field,” he said.

He also suggested a 50 percent cut in tax on agriculture related industries to enable them to enhance capital allowance.

“But if you tax agricultural inputs including machinery just like you tax other commodities, then what the hell you have done a disservice to yourself?”

South Sudan has seen lack of investment in agriculture and continues to import its commodities from the region despite the huge potential in the sector.

The country’s annual revenue generation heavily depends on crude oil exports and fluctuations in oil prices impact the economic stability.

Years of conflicts have also disrupted economic activities and hindered development efforts.