As detailed in the Medium-Term
Revenue Strategy, the government has proposed to set the tax at 5 percent of the total value of farm produce delivered to cooperatives and other
organized groups.
In the document, Treasury
Cabinet Secretary Njuguna Ndung'u proposed that the tax be effected between the
upcoming Financial Year, 2024/2025 and 2026/2027.
Treasury explained that the tax
was aimed at helping raise revenue for government programmes.
According to Ndung’u, the agricultural sector has been undertaxed over the years and things need to
change.
Notably, the government
anticipated resistance from farmers with the Treasury, outlining a strategy to address the concerns.
The proposed tax has seen a
split in the Mt Kenya political leadership. Notably, a section of leaders from
the ruling party including Gatanga MP Edward Muriu have stated that they will
not support the government proposal.
The leaders explained that the
tax would negatively affect most of their supporters given that the
region's economy is highly dependent on agriculture.
Some of the food items that
are produced in the region include; avocado, tea, coffee, and milk among
others.
The Kenyan DAILY POST
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