12.3 C
New York
Monday, March 4, 2024

Buy now

Ruto introduces new tax on all Kenyan farmers

All Kenyan farmers to pay Sh5 for every Sh100 they make in the new tax plan by the Ruto administration.

The administration of President William Ruto now intends to pursue additional taxes, presumably in an effort to generate more revenue, with a focus on farmers this time around.

According to a medium-term revenue strategy by Treasury Cabinet Secretary Prof. Njuguna Ndung’u, government wants every farmer delivering their produce to the markets to pay Ksh.5 for every Ksh.100 obtained from sales. 

CS Ndung’u, in his medium-term revenue strategy, says the agricultural sector is undertaxed.

“The Government will introduce a withholding tax on agricultural produce which will be a final tax at a rate not more than 5 per cent of the value of the produce delivered to the cooperatives or other organised groups,” says Treasury.

The Treasury document adds that “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.”

Treasury acknowledges that the sector has unique challenges, thereby making taxation difficult.

Atwoli urges Ruto to follow in the footsteps of Azimio la Raila Odinga

Top Vihiga CEC busted with KSh 400,000 corruption money

Raila calls out Ruto over forceful evictions

24-year-old Starlet Wahu Mwangi found murdered inside the Nairobi Airbnb Apartment

Government lists the only universities approved to offer law courses (LIST)

NHIF loses Ksh.20b through fake claims as CS Nakhumicha suspends 27 hospitals 

The industry is very unorganized, cash-only, and defined by the belief that it shouldn’t be subject to taxes. Treasury now states that it will set up procedures to extract the highest possible tax from Kenyan farmers.

In the event that the plans are implemented, the government will impose a final agricultural produce withholding tax, with the maximum amount being 5% of the produce’s worth that is given to cooperatives or other organized groups.

For every Ksh.100 a farmer gets in the market Ksh.5 will belong to the government.

To achieve the maximum taxes, the government will intensify taxpayer education to ensure that taxpayers understand their role in nation-building and the need to pay taxes.

Also read,

ODM MP pokes hole into Raila call for anti-government protests

EACC goes after hospitals implicated in NHIF theft

NTV, KBC journalists stabbed during an impromptu raid at Nairobi club

Government launches for application of the electronic Travel Authorization (eTA)

EPRA closes down 18 petrol stations selling adultered fuel (LIST)

Bar owners in Mt Kenya stage protest against DP Gachagua

Follow us

FaceBook

Telegram

Stay Connected

0FansLike
3,913FollowersFollow
0SubscribersSubscribe

Latest Articles