THE HOUSE of Representatives last week passed the Rural Agricultural Development Authority (Amendment) Act, exempting that organisation from income tax on all interest earned on deposits held in interest bearing accounts with effect from January 1, 1997. Under the provisions of the Act, RADA will also be entitled to a refund of income tax levied during the assessment year of 1997-2001. According to Agriculture Minister, Roger Clarke, the amendments would enable RADA not to seek a waiver in the future and to allow the organisation to use the additional income as appropriations-in-aid where funding is insufficient. RADA operates a number of interest-bearing accounts with the approval of the Ministry of Finance and Planning and the interest earned on funds held in such accounts is subjected to income tax. The authority is funded from Government subvention budget and operates 13 parish offices. It also has financial responsibility for special projects, which are funded by local and external funding agencies.
