Electricity tariff hike another blow to Agri sector facing increased tax and wage bills

[{“type”:”text”,”content”:”The increase comes just one day after the Budget Speech in which Enoch Godongwana, minister of finance, announced an increase in a variety of taxes and excise such as the health promotion levy that negatively affect specific commodity producers. Cumulatively, these increases can only hamper the ability of the sector to recover from the shocks of the past two years.nnThese announcements followed an increase of 6.9% in the national minimum wage which came into effect in March.nnWhile the increase granted by NERSA is substantially below Eskomu2019s request, when this above-inflation increase is considered alongside the increased taxes, minimum wage, and the rapid increase in other agricultural input costs owing to global supply chain disruptions during Covid-19, this decision will clearly have dire consequences for farmers who are already under tremendous strain.nnAgri SA will study the decision and approach government to find ways to relieve the cost burden on the sector. This is not only vital for economic growth and job creation, but also to secure the countryu2019s food security in the long run.”,”position”:0,”id”:”a77H5xk7ZqxVIz0R”}]