The Department of Economic Affairs in conjunction with the Customs and Excise
Department have thoroughly researched the duties related to imports and raw
materials for agricultural purposes; which specifically includes for banana
The consumption Tax Order makes provision for the exemption of consumption taxes
on imports for banana production under the Second Schedule of Consumption Tax
Amendment Act of 1988. This was a narrow provision since it only specified
airline related products. However, Cabinet by Conclusion No. 904 of October 11,
2004 approved a specific list of products which was revised and extended in
2005, by Conclusion 227B of March 21, 2005.
This list is extensive and covers forty-one (41) specific items ranging from raw
materials and fertilizers to packaging material.
With regard to the Environmental Levy, Statutory Instrument No. 101 of 2000
clearly exempts all raw and packaging material imported for use in the banana
industry from the payment of the levy.
As a further safeguard, the Customs Act No. 63 of 1990, section 76 gives Cabinet
the authority to refund any duties which were levied in error. As a result the
statements made by Sir John in that regard are factually inaccurate.
July 14, 2005.