× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

CS Henry Rotich’s decision to lower duty on wheat faulted

BUSINESS
By Lee Mwiti | Jun 11th 2016 | 2 min read
By Lee Mwiti | June 11th 2016
BUSINESS

Wheat farmers will suffer the most after the Treasury lowered import duty on the produce from 35 to 10 per cent.

Speaking in a public forum to discuss Treasury Cabinet Secretary Henry Rotich’s budget proposals, financial services provider Grant Thornton, senior tax and advisory partner Parag Shah said the move was ill-fated and a blow to farmers since it was only meant to protect local millers, but slowly strangle local producers.

“I know of local millers who import very high quality wheat grain from Russia and the Far East which also comes cheap. They don’t like engaging local farmers. The remission on import duty to 10 per cent will only favour these elite millers, but affect the farmers,” explained Shah.

The financial services provider also took issue with Treasury’s move to exempt from VAT products from Export Processing Zone (EPZ), saying this will not kill local industries.

Tax amnesty

“EPZ can only sell 20 per cent of its entire products to the local market. The rest will go to export markets. That is a very small percentage for Kenyans to benefit from,” Shah added.

The proposed Increase in air passenger service charges from $40 (Sh4,043) to $50 (Sh5,054) for international travel and Sh500 to Sh600 for local travel, was also termed as too little to create any significance, but might contribute in lowering tourist numbers, given that many tourists depend on air travel.

The tax advisers also requested for proper guidelines for the tax amnesty given to those holding assets and deposits in overseas banks.

Kenya Revenue Authority (KRA) head of legal affairs Sylvester Okello explained that the amnesty will apply only to those who will return their properties back to the country.

Share this story
Insurance companies win big in Treasury budget proposals
Insurers have emerged as the biggest winners in proposals contained in the national budget, granting them a slice of the Sh1.6 trillion-worth imports into the country.
China rejected Kenya's request for Sh32.8b debt moratorium
China is Kenya’s largest bilateral lender with an outstanding debt of Sh692 billion.
.
RECOMMENDED NEWS
Feedback