Meatco to be compelled to pay tax

THE Minister of Agriculture, Water and Rural Development, Helmut Angula, plans to table an additional amendment to the Meat Corporation of Namibia (Meatco) Act this week, which will compel the company to pay income tax.

This is despite the Minister saying that the company was suffering losses because it was not receiving enough animals for slaughter. “Government will not further subsidise Meatco to keep the shop open,” he said.Responding to comments made by MPs last week during debate on the Meatco Amendment Bill in the National Assembly, Angula said on Thursday that if the amendment was accepted, Meatco would begin to contribute to the fiscus.The bill will give the director nominated by the workers voting rights on the board.The Minister has retracted a statement made when he motivated the bill: that the management of the Oshakati and Katima Mulilo abattoirs would be placed in the hands of the previously disadvantaged.”I wish to state that the Northern Communal Area (NCA) abattoirs are not being privatised,” said Angula.However, the Minister added that abattoirs north of the red line that have been closed down, such as the one at Rundu, could be re-opened if other parties showed interest in their management.”If there are entrepreneurs who believe they can turn the situation around, Government will not hesitate to transfer the management of NCA abattoirs to them,” he said.Angula said the facilities could be used for export purposes and that his Ministry and the Meatco board were discussing the issue.In response to farmers’ complaints about the low prices offered by Meatco for their livestock, Angula said communal farmers were to blame for allowing the condition of the animals to deteriorate to such a degree that they had little value.”My ministry has been encouraging communal livestock farmers to properly look after their animals and sell when they are healthy,” he said.”Government will not further subsidise Meatco to keep the shop open,” he said.Responding to comments made by MPs last week during debate on the Meatco Amendment Bill in the National Assembly, Angula said on Thursday that if the amendment was accepted, Meatco would begin to contribute to the fiscus.The bill will give the director nominated by the workers voting rights on the board.The Minister has retracted a statement made when he motivated the bill: that the management of the Oshakati and Katima Mulilo abattoirs would be placed in the hands of the previously disadvantaged.”I wish to state that the Northern Communal Area (NCA) abattoirs are not being privatised,” said Angula.However, the Minister added that abattoirs north of the red line that have been closed down, such as the one at Rundu, could be re-opened if other parties showed interest in their management.”If there are entrepreneurs who believe they can turn the situation around, Government will not hesitate to transfer the management of NCA abattoirs to them,” he said.Angula said the facilities could be used for export purposes and that his Ministry and the Meatco board were discussing the issue.In response to farmers’ complaints about the low prices offered by Meatco for their livestock, Angula said communal farmers were to blame for allowing the condition of the animals to deteriorate to such a degree that they had little value.”My ministry has been encouraging communal livestock farmers to properly look after their animals and sell when they are healthy,” he said.