Ivory Coast suspends VAT on fertiliser inputs until December
Ivory Coast’s Directorate General of Taxes has suspended VAT on fertiliser inputs and packaging materials until 31 December 2026 to support agricultural production and reduce costs for farmers.
Ivory Coast’s Directorate General of Taxes (DGI) has suspended the value-added tax (VAT) on fertiliser inputs and packaging materials used for their preservation until 31 December 2026. The measure, which took effect on 1 July, reverses the VAT introduced under the 2026 Finance Law that had been in force since 1 January 2026.
Under the new directive, manufacturers and distributors of fertiliser inputs will no longer be required to pay VAT on eligible products for the remainder of the year. The temporary suspension is expected to reduce production costs for fertiliser manufacturers and ease the financial burden on businesses in the agricultural supply chain. Authorities say the decision will remain in effect until the end of December 2026, after which the tax policy may be reviewed. The move forms part of the government’s latest tax measures aimed at supporting agricultural production and improving access to essential farming inputs for the sector.
The Nigerian stake is clear. Nigeria is also an agricultural producer, and fertiliser costs are a major input for farmers. The Ivorian tax suspension is a recognition that farmers need support to remain competitive. Nigeria has also implemented tax policies to support agriculture, but the impact has been limited.
From a Nigerian vantage point, the Ivorian tax suspension is a reminder of the importance of agricultural support policies. Nigeria must ensure that its tax policies do not burden farmers and that the agricultural sector receives the support it needs to thrive.
This echoes the 2010s agricultural input subsidy programmes in Nigeria, which also sought to reduce costs for farmers. The mechanism then was different, but the result was the same: a recognition that agriculture requires policy support.
The winners: Ivorian farmers, who will benefit from lower fertiliser costs; and the Ivorian agricultural sector, which gains from reduced input costs. The losers: the Ivorian government, which loses tax revenue; and the Nigerian government, which must ensure that its agricultural policies are competitive.
Bottom Line: Ivory Coast has suspended VAT on fertiliser inputs. The goal is to support farmers and reduce costs. The question is whether the suspension will be extended or expire in December.