‘Abolish VAT on seed’ call


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14 December 2022
Growers can't compete with imports, says Ministry.

THE Kenyan Ministry of Agriculture wants 16% VAT on potato and other vegetable seeds abolished.

The country's Ministry of Agriculture has said it will initiate talks with the Treasury with a view to having the 16% value-added tax (VAT) abolished to make Kenya’s produce competitive in the market amid cheap imports.

Potatoes are one of the most consumed foods in Kenya, and growers should be able to make a good living from the crop according to news outlet Tuko. But Agriculture and Livestock Principal Secretary Harry Kimtai said the tax has made it expensive for growers to engage in profitable business, especially in the wake of cheap imports from countries such as Tanzania.
Talks have been held with the Seed Trade Association of Kenya (STAK) on how the issue can be addressed.

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Harry said the high cost of seed locally has seen some growers source the commodity from neighbouring countries despite uncertainty over whether they are up to standard.

Source: Business Daily Africa  Photo: Tuko

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