Financial Responsibility of an Agri-Business

There are many South African agricultural laws and Acts that govern the way in which a farmer operates on a farm. In groups of four, discuss these laws and provide your understanding of why they are in place. These laws and Acts include:

• Labour laws that refer to the following Acts.
• Taxes: PAYE and income tax.
• Types of crops produced: Restrictions on the production of certain products (cannabis/dagga) or certain animals.
• Environmental legislation: The control of activities that concern the environment.
• Health and safety: Storage and dealing with livestock.
• Export and import: Certain crops and animals are not allowed to be imported or exported.
• Labour and industrial relations: These are laws that cover the relationship between employers and employees and the state.
• Basic conditions of employment Act of 1983.
• Occupational health and safety Act, 1993.
• Wages Act.
• Workmen’s compensation Act.
• Unemployment insurance Act.
• Labour relations Act of 1995.
• Employment equity Act of 1998.
• Skills development levies Act of 1998.

Definitions

Income tax: A tax levied by a government on the income of individuals and business firms. Taxes on personal income and business profits are major revenue sources for South Africa. These taxes are applied to repair roads and infrastructure, pays for government hospitals and clinics, government services (policy, military), training subsidies, housing etc.

Value added tax - it is the law of the country that tax must be included in the price of goods and services, commonly referred to as VAT.

Workmen’s compensation - this is an Act that forces employers to insure their employee’s disablement or death caused by accidents while they are on duty or illness caused as a result of the kind of work that they do.

Skills levy payments - this is a levy imposed by the government on all businesses and government institutions in the country. This levy is set up to accelerate the training and development of skills in all areas of the workforce and to ensure that South Africa becomes a world-trading competitor.