Hatuwezi umiza mkulima, I won’t allow it – GACHAGUA now tells RUTO over the 5% tax imposed on farmers

Sunday, March 3, 2024 – The proposed 5% Farm Produce Tax is now threatening the relationship between President William Ruto and his Deputy, Rigathi Gachagua.

This is after Gachagua faulted Ruto’s government for imposing the tax on farmers, saying the tax was misguided.

In January this year, a withholding tax of not more than 5% on farm produce was proposed through the Medium-term Revenue Strategy by the National Treasury.

This would see farmers contribute to the government's initiative to raise more revenue.

For every Sh100 made in sales, a farmer would remit Sh5 to the taxman.

However, speaking in Embu during the county's Livestock, Dairy, and Fisheries Exhibition, Gachagua admitted that the tax proposition would exploit the farmers.

According to the DP, it was unreasonable to fight for the welfare of the local farmers and at the same time deprive them of their profits through taxes.

"On this tax issue, we saw some mistakes in it...It cannot help the farmer, and on the other hand, exploit them. Our government values farmers and listens to them," said Rigathi.

To right the wrong, the deputy president said he had engaged Ruto and the National Treasury Cabinet Secretary Njuguna Ndung'u to review the proposition. 

He promised that the lawmakers would be engaged in the matter for purposes of amendment in the National Assembly.

"We will meet with our MPs to seek a solution to this," Gachagua stated.


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