President Ruto Now Goes For Farmers In New Tax Measures
The current administration led by President William Ruto intends to implement additional taxation, specifically focusing on farmers, as part of its new efforts to generate increased revenue.
A revenue plan proposed by Treasury Cabinet Secretary Prof. Njuguna Ndung’u indicates that the government aims to implement a fee of Ksh.5 for every Ksh.100 earned from sales for all farmers who sell their produce in markets.
CS Ndung’u, in his medium-range revenue plan, asserts that the agricultural industry is not taxed adequately.
The document says, “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 Treasury recognizes that the industry faces distinctive obstacles, which consequently complicates the process of taxation.
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The industry operates largely in an informal manner, relying on cash transactions and holding the belief that it shouldn’t be subject to taxation. However, the Treasury has announced plans to implement methods aimed at maximizing tax collection from farms in Kenya.
If these suggestions come into effect, the government plans to implement a conclusive levy on agricultural produce. This levy would not exceed 5% of the produce’s value upon delivery to cooperatives or other organized entities.
This implies that out of every Ksh.100 a farmer earns in the market, Ksh.5 will be allocated to the government.
The government aims to maximize tax revenue by enhancing taxpayer education, ensuring a better comprehension among taxpayers regarding their contribution to nation-building and the importance of fulfilling their tax obligations.
The Treasury’s suggestions will undergo public engagement via parliamentary involvement.
President Ruto Now Goes For Farmers In New Tax Measures
