Agricultural Food Authority lauds MPs for amending Financial Bill

AFA board member Samuel Ongow

The Agriculture and Food Authority (AFA) has lauded members of the National Assembly for listening to the cries of Kenyans before adjusting the Finance Bill 2024.

AFA board member Samuel Ongow singled out the proposed taxes on sugar transportation, which he noted, was going to be a burden to cane farmers across the country.

Speaking in Kisumu Ongow said transporters were going to offload the tax burden to sugar cane farmers.

“The VAT on the transportation of sugar was going to cause untold sufferings to farmers,” he said.

The director said more adjustments should be made to the bill so that it reflects the situation on the ground.

The changes were announced by the budget committee chairperson house Kuria Kimani after a Kenya Kwanza Parliamentary Group meeting conducted by President William Ruto.

Other items done away with include 16 per cent VAT on bread, VAT on financial services, and foreign exchange transactions has also been removed.


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Kuria further said there would be no increase in mobile money transfers adding that 2.5 per cent Motor Vehicle Tax has also been removed.

He said the Excise Duty on vegetable oil has been dropped.

Kuria said concerns about the transfer of mobile services prompted the decision not to increase transaction fees for mobile phone transfers; the status quo remains.

He noted that the proposal includes making statutory deductions such as Housing Levy and SHIF tax deductible, thereby reducing the amount subjected to PAYE and increasing disposable income.

The chairman said the eco levy will only apply to imported finished products; locally manufactured items, including diapers and sanitary towels, will not be subject to the eco-levy.

The VAT threshold, he said, will increase from KSh5 million to KSh8 million, meaning SMEs with a turnover of less than KSh8 million will not need to register for VAT.

Small businesses with turnover of less than KSh1 million, Kuria said, should be exempted from IMS.

‘Excise Duty will only be proposed on imported eggs, onions, and potatoes, making locally produced items more marketable,” he said.

The swift action by the government followed huge protests against the bill where police engaged the public in running battles in the city.

By Fredrick Odiero

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