Tuesday, March 5, 2024 - Molo MP Kuria Kimani, who also serves as the chair of the Finance Committee in the National Assembly, has maintained that farmers must register on eTIMS for their own good.
This is even as the move to register on eTIMS has caused
jitters among the farmers, especially after President William Ruto’s government
imposed a 5% farmers' produce tax on them.
Speaking in an interview, Kuria clarified that registering
on eTIMS is not targeting to expand the tax base for farmers.
Kimani explained that the registration would accord the
farmers a chance to sell their produce directly to processors, opening them up
to better returns.
He further revealed that brokers had learned of the trick
early on and registered on eTIMS from where they buy produce from farmers at
extremely lower prices and sell it at a profit.
"If you are selling your avocados to (a brand) and it
has to file their taxes to show their expenses where they spend their money on
for them to be allowed to be deductable from their corporate tax, they have to
be generated from eTIMS," he explained.
"This avenue is just providing a sought of a receipting
system. In the absence of it, you will have brokers register on eTIMS, buy the
produce from farmers at whatever price they want, and sell them to (the brands)
and this is what we are trying to avoid."
According to Kuria, farmers who earn less than Ksh24,000
returns should not worry about taxation since their income is lower than the
State's Constitutionally approved taxable income.
He further assured those whose annual gross revenue is less
than Ksh1 million will not be targeted for the turnover tax.
The Kenyan DAILY POST
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