COST-BENEFIT ANALYSIS (CBA) TO ASSESS THE OPTIONS TO REFORM IMPORT DUTY AND TAXES SYSTEM TO MAKE IT ENCOURAGE PROPER (AND SAFER) PESTICIDES APPLICATION, INCREASED ADOPTION AND USE OF IMPROVED SEED AND FERTILIZER, AND INCREASED USE OF QUALITY VETERINARY DRUGS TO SUPPORT THE OVERALL DEVELOPMENT OF THE AGRICULTURE/LIVESTOCK SECTOR
CLIENT: ALLIANCE FOR A GREEN REVOLUTION IN AFRICA
SOURCE OF FINANCE: MIRA
AGRA is implementing a five year Micro Reforms for African Agribusiness (MIRA) project in Burkina Faso, Ethiopia, Ghana, Nigeria and Tanzania. MIRA will provide these governments with access to high quality local and international technical assistance for identifying, prioritizing and reforming specific agricultural regulations that currently deter or limit private investment in agribusinesses operating in smallholder agricultural value chains. In Ethiopia, MIRA and government counterparts have identified and prioritized 4 reforms: develop and approve a National Seed Policy; develop and approve a comprehensive contract farming legal framework; revisit duty and taxes on agricultural mechanization, irrigation/drainage equipment, and animal feed; and develop and approve Directive/Guidelines for streamlining of policy processes under which cereals export restrictions are introduced and revoked. Work on these reforms is now well advanced.
Building on MIRA support to the Ethiopian Agricultural Transformation Agency (ATA), AGRA wishes to undertake economic analysis to support the case for exemption of import duty and taxes on services and equipment related to pesticides , seed , and ,fertilizer; and veterinary drugs and to make it encourage proper and safer application of pesticides, increase adoption and use of improved seed and fertilizer; and reduce the cost of quality veterinary drugs for smallholder farmers/semi-pastoralists/pastoralists.
Objectives of the Consultancy
The main objective of this consultancy is to analyze duty and taxes currently applied to equipment and services related to pesticides, seed, and fertilizer; and duty and taxes veterinary drugs and develop a policy reform proposal with the aim of reducing the burden of duty and taxes on the promotion proper (and safer) pesticide application, increased adoption and use of improved seed and fertilizer, and increased use of quality veterinary drugs
Scope of the Service
The contractor shall undertake the necessary economic and revenue implications analyses of existing duty and taxes applicable to equipment and services related to pesticides, seed, and fertilizer; and duty and taxes on veterinary drugs and provide appropriate recommendations for action. Specifically, the consultant will perform the following tasks:
- Review the existing system (both the policy and administration) of taxing equipment and services related to pesticides, seed, and fertilizer; and veterinary drugs
- Develop a comprehensive inventory of all the current equipment and services related to pesticides, seed, and fertilizer; and veterinary drugs tax incentives and concessions offered in Ethiopia, drawing from the relevant laws, regulations and practices in place, and compare them with those in other African Countries and South Asia Countries;
- On the basis of the inventory, quantify the costs of equipment and services related to pesticides, seed, and fertilizer; and veterinary drugs tax incentives (tax expenditures)
- Carry out survey of investors (including local manufacturers, importers and distributers, producers(seed, and pesticides), and users (including smallholder farmers and cooperatives) in the pesticides, seeds, fertilizer, and veterinary drugs tax incentive;
- Carry out a cost-benefit analysis of equipment and services related to pesticides, seed, and fertilizer; and veterinary tax incentivesà further differentiated by type of technology to promote environmental sustainability and social inclusion
- Inception report
- Initial presentation of findings and recommendations (including tax reforms policy options note based on the recommendations)
- Final presentation of findings and recommendations
- Final report
AGRA now invites eligible consultants (firms) to indicate their interest in providing these services. Interested consultants must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, general qualifications of key staff, and so forth). Consultants may associate to enhance their qualifications. A maximum of six (6) qualified firms shall be shortlisted to provide detailed technical and financial proposals.
The expression of interest shall not exceed 20 pages. The detailed terms of references can be found on AGRA Website www.agra.org
Interested consultants may obtain further information at the email address provided below.
Expressions of interest must be sent to: firstname.lastname@example.org by 30th June 2018 .