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UASIN GISHU

County executive wants 16% VAT imposed on agrochemicals removed

Elvanis Ronoh
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Some of the products that were being exhibited at the Agri-Expo at Eldoret National Polytechnic on February 8, 2019. [Source/Elvanis Ronoh]

Uasin Gishu County Executive (CeC) in charge of Agriculture and Livestock Samuel Yego now wants the National government to remove the 16 per cent Value Added Tax (VAT) on Agrochemicals.

Speaking during an Agri-Expo organized by Moiben connections, Uasin Gishu County Government and the Kenya Market at the Eldoret National Polytechnic on Friday, Yego said the duty is very high to an extent that small scale farmers cannot afford.

“The increase of tax on pesticides has raised the operating costs for farmers in turn leading to a hike in food prices thus putting the huge burden on a common mwananchi who cannot afford,” said the CeC who also noted farmers from the North Rift region cannot plant more crops due to the tax.

“Farmers will now not be able to feed the country yet farming is the backbone of the economy. The government should come in and rescue farmers,” he added.

The County Executive further cautioned that there would be an adverse effect on the Big Four Agenda as a result of the 16 per cent tax imposed on Agrochemicals.

Food security is one of the Big Four Agenda that the national government is focusing on.

Previously, Agrochemicals were zero-rated but in July 2018, President Uhuru Kenyatta assented to the tax law amendment that introduced a 16 per cent VAT. 

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