Cassava bread bakers to get 12% tax rebate

Producers of quality cassava bread will from next year enjoy a 12 per cent tax rebate, the Federal Government has said.It also gave all producers of bread 18 months with effect from March 31, 2012, to move to the 40 per cent substitution of wheat flour with high quality cassava flour.The Minister of Agriculture and Rural Development, Dr. Akinwunmi Adesina, stated this in Abuja at a meeting with representatives of different bread producers.He explained that the move was specifically targeted at encouraging the production and consumption of cassava bread by Nigerians.The minister also said that from the 2012 fiscal year, the Federal Government would raise tariff on imported wheat.This, he noted, would encourage the substitution of wheat flour with high quality cassava flour for bread production.To encourage this further, Adesina said all equipment and machinery for processing high quality cassava flour as well as composite flours would attract zero taxes.He said, You will recall that Mr. President launched the 40 per cent cassava bread which is from blending 40 per cent high quality cassava flour with 60 per cent wheat flour.In his 2012 budget speech, Mr President backed this up with bold fiscal policies to promote the substitution of wheat flour with 40 per cent high quality cassava flour in bread,Government has raised the tariff on imported wheat to encourage the substitution of wheat flour with high quality cassava flour.He adds, To encourage this further, all equipment and machinery for processing high quality cassava flour and composite flours will attract zero taxes.Furthermore, all flour mills, producers of high quality cassava flour who attain 40 per cent substitution with high quality cassava flour will receive a 12 per cent tax rebate.Continuing, he said, With effect from March 31, 2012, the importation of cassava flour will be prohibited. All bakers will have within 18 months to move towards 40 per cent substitution of high quality cassava flour.The minister said that as wheat imports flooded the country, Nigerian farmers were being driven into poverty.He explained that the Federal Government was currently working with the bakery industry to provide appropriate incentives to make the necessary investment to modify their processes and supply chain.He added that there would be adequate supply of high quality cassava flour to the flour milling industry to ensure availability of the product.We are already working with the private sector to establish 12 high quality cassava processing plants with an installed capacity of 240 tonnes per day, which will allow us fully meet the needed supply of the flour. We will have this established in 2012, the minister said.
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