An analysis of the current taxation policies affecting agro-processing micro-enterprises (AMEs) in the Cocoa Sector in Kenema City

Abstract

The study utilized a qualitative research technique to investigate the impact of taxation on the operations and growth of several players in the cocoa value chain, including growers, buyers, sellers, and processors. A total of 25 participants were selected, including 8 cocoa producers, 6 buyers, 6 sellers, and 5 processors, all sourced from different areas within Kenema City to guarantee a representative sample. The results indicated that higher tax rates, complicated tax rules, and inadequate tax education constituted substantial obstacles for cocoa farmers. The study also found that a lack of understanding of tax policies and their consequences obstructed the successful functioning and expansion of AMEs. The study recommends various reforms to enhance the tax system, including thoroughly evaluating existing tax policies, establishing tax education and training initiatives for stakeholders, introducing financial assistance programs for small-scale farmers and processors, and heightening awareness of policy changes within the sector. These ideas seek to establish a more favorable environment for the development of cocoa-based AMEs and augment their impact on the local economy.