16 per cent VAT on pesticides will lead to high food prices, says AAK

AAK CEO Evelyn Lusenaka (center), BASF Sub-Hub Manager Crop Protection and Public Health, Gift Mbaya (left) and Lukas Viljoen (right) in an earlier event. The AAK boss said farmers will incur high cost of production hence skyrocketing food prices. [File, Standard]

The Agrochemical Association of Kenya (AAK) has opposed the government move to introduce a 16 per cent Value Added Tax (VAT) on agricultural pest control products that became effective July 1.

Previously, the pest control products were zero rated but in the July 18, 2018 President Uhuru Kenyatta assented to the Tax Law (Amendment) Act that introduced a 16 per cent VAT.