By Ally Jamah
Members of the Agrochemical Association of Kenya said that the VAT Bill 2012 before Parliament is a direct threat to food security and the agricultural industry. They say it will result in a dramatic increase in prices of inputs, such as agrochemicals, fertilisers, and equipment.
“We are confident MPs will see how negatively the Bill will affect the agricultural sector. The agrochemical industry will see loses as high as Sh1 billion due the taxes. The losses in the agriculture sector is unthinkable,” said AAK Chairman, Kuria Gatonye on Tuesday.
He clarified that AAK appreciates the Government’s need to increase its tax revenues to finance development, but said targeting the fragile agricultural sector would undermine the economy.
“The idea to zero-rate agricultural inputs was to allow more farmers to use them to boost production. The Ministry of Finance seems to have forgotten that. We urge them to reverse their move,” he said.
“It is unlikely that the suppliers will absorb the new taxes and will pass it to farmers who can ill-afford higher prices,” he added
AAK chairlady in charge of training, Alice Mwikali, said the Government should be thinking of subsidising agricultural inputs to boost production.
instead of bringing the industry to its knees through additional taxes.
- Salva Kiir sacks top South Sudan officials
- Lawyer wants Chinedu to appear in court
- Maji marefu’s futile effort to find stolen property
- Diplomatic passports, special number plates for governors
- Can chickens really be cleverer than a toddler? Studies suggest animals can master numeracy and basic engineering
- Freedom of media under threat in Eastern Africa