Kenyans react to government’s Move on Farmers: pay Ksh.5 for every Ksh.100 obtained from sale.
Kenyans react to government’s Move on Farmers: According to A medium-term revenue strategy posted by Treasury Cabinet Secretary Prof. Njuguna Ndung’u, the government now wants every farmer delivering their produce to the markets to pay Ksh.5 for every Ksh.100 obtained from sales.
The cabinet secretary in his medium-term revenue strategy highlighted the agricultural sector is undertaxed.
The statement read,”The Kenyan economy is dependent on the agricultural sector contributing an average of 21.2% of the GDP and the highest employer compared to other sectors.”
The cabinet secretary also stated that the agricultural sector is highly informal, cash-based and characterized by the notion that the sector should not be taxed, due to this, the Treasury will lay down mechanisms to raise maximum taxes from Kenyan farms.
If legislators pass this proposal, a final withholding agricultural produce tax at a rate not more than 5% of the value of the produce delivered to the cooperatives or other organized groups.
Netizens have reacted;
Sholla opined,”This will turn out a disaster ; I remember my first time owning a sugar plantation in some part of kenya ; i invested almost 50k in one acre ; only for me to get 49,500ksh , a huge loss in my opinion . Now if govt was to tax m that time it would be an injustice.”
Alex expressed,”Uhuru warned us against electing Kenya kwanza we didn’t listen. As he said, we are regretting now. If elections were held today….I would vote against Kenya kwanza.”
Wainaina posed,”Tea and coffee farmers are uprooting their crop because of low returns yet Ruto wants to eat into their low returns?”
Another netizen posed,”How do you tax farm inputs and tax output? Last year I invested sh3M+ to do 300acres only to get sh250k due to drought.”
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