By Brandon Moss

Côte d’Ivoire has introduced a 9% value-added tax (VAT) on fertiliser inputs under its 2026 budget framework—a significant policy shift that could materially influence the cost of farming across key agricultural zones. Previously exempt, fertiliser and associated production inputs are now subject to VAT, raising questions about cost pressures on producers and broader implications for agricultural competitiveness.

Policy Change and Its Rationale

The tax authority announced in mid-January that the exemptions on imported fertiliser inputs were removed, with the government settling on a reduced 9% rate instead of the full standard VAT. This adjustment follows fiscal pressures to broaden the tax base while moderating the impact on essential agricultural inputs.

However, Côte d’Ivoire does not produce mineral fertiliser domestically, making the sector entirely dependent on imports. In 2024, the country brought in more than half a million tonnes of fertiliser, including urea, potassium chloride, and compound blends—key elements for crop nutrition.

Impact on Cost Structures and Crop Production

Agricultural stakeholders warn that even a reduced VAT could increase the retail price of fertilisers, squeezing thin margins on farmland that already struggles with input affordability. Smallholder farmers, who make up the bulk of cocoa, cashew, rice, and maize producers, are especially susceptible to price changes.

The government’s decision to balance fiscal needs with sector support highlights the complex policy trade-offs in managing public finance while sustaining agricultural growth.

Toward Sustainable Fertiliser Use

Côte d’Ivoire has previously committed to scaling fertiliser use and enhancing soil health through public-private partnerships. However, the new tax may slow progress on those plans unless coupled with subsidies, targeted support programs, or improved distribution systems to reduce effective prices at the farm gate.