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Stakeholders Demand For Repeal Of 16% Vat On Agricultural Pest Control Products.

Press Release: Stakeholders Demand For Repeal Of 16% Vat On Agricultural Pest Control Products.

We as stakeholders in the agriculture sector are demanding that the government repeals the just accented to Tax Laws (amendment) act 2018 which imposes 16% VAT on pest control products.

As stakeholders we are concerned on the negative effects that the introduction of the 16% VAT will have to the agriculture sector as a whole.

This additional cost compounds the many challenges that the Kenyan farmers are currently facing.  In the last 3 seasons, farmers have faced severe drought, fall armyworm invasion, prolonged floods, influx of cheap food imports that depressed local prices. All these have   rendered the Kenyan farmers uncompetitive.

The new VAT on pest control products, compounded with the expected increase in fuel prices  will increase the cost of production. The tax increase shall result in;

  • More than 50% increase in the cost of production for Kenyan farmers
  • Increased food prices for the local mwananchi,
  • Increased dependency on food imports,
  • Increased counterfeit pesticides in the market,
  • Food safety and health concerns due to exposure to substandard pesticides
  • Loss on income and livelihoods for small scale farmers
  • Depressed revenue from export markets hence loss of foreign exchange.
  • Drawback in the big 4 agenda on food security

The gains achieved in the agricultural sector are going to be  killed by this move to further tax the Kenyan farmers.

We, the stakeholders are calling on government to remove the 16% VAT on pesticides and urgently engage the stakeholders to find the best way forward.

Signed by:

 

Stephen Muchiri- C.E.O. Eastern Africa Farmers Federation: ………………………

Anthony Kioko- C.E.O- Cereal Growers Association:

………………………

Hosea Machuki -C.E.O- Fresh Produce Exporters Association of Kenya: ………………………

Clement Tulezi- C.E.O Kenya Flower Council:

………………………

Okisegere Ojepat- C.E.O, Fresh Produce Consortium of Kenya: ………………………

Evelyn Lusenaka C.E.O, Agrochemicals Association of Kenya; ………………………

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