The Mountain JournalHundreds of avocado farmers have said they will not pay the tax demanded by the KRA after they sell the commodity.The tax officials were thrown into a rude shock after they were on Monday forced to cut short their speeches as they were shouted at.
The players in the avocado value chain including the farmers, marketing agents, and processors had converged at Matenjagwo grounds in Kandara, for an exhibition, where KRA officials were dressed down, as they explained how the players to contribute to paying taxes as enshrined in the Finance Act.
The tax officials from Nairobi and Thika offices ran into trouble as they detailed how the farmers will be paying tax at three percent of the produce they sell and must be equipped with the electronic tax invoice system eying to net five percent withholding tax at Sh5 per Sh100 made.
KRA in three years seeks to collect Sh14.5 billion from the farmers.
The exhibition was organised by the Avocado Aggregators’ Association chaired by Mr Joseph Wanjohi Munyui convened to equip the players with ideas on how to improve their business to match the market demand.
The farmers, the tax officers said are supposed to issue receipts to the buyers of their produce to help determine the taxation to be paid to the government.
An Avocado Agent Ms. Agnes Njeri said some of the exporters were relocating to Tanzania following the taxation, as the marketing agents are left to shoulder the burden of converging the produce.“
The taxation burden has seen many of the exporters leaving Kenya for Tanzania.
Imposing tax on the farmers will worsen the situation,” said NjerI.
MPs Edward Muriu ( Gatanga) and Chege Njuguna (Kandara) respectively said the farmers should be exempted from taxation as they last year earned the country over Sh20 billion. The lawmakers from the avocado-producing areas in Murang’a county said the regulation imposed on transportation of the produce in proboxs and open pick-ups is uncalled for.
Chege, the Kandara MP said the regulations imposed in avocado farmers are uncalled for, as they do not benefit from fertilizer subsidies from the government.Muriu said the coffee and tea farmers are taxed while their counterparts in maize, fish, and sugar cane are exempted.
“ Last year Kenya exported avocado worth Sh20 billion. I will notify KRA leadership that avocado farmers will not pay the taxation,” said Muriu.
www.themountainjournal.co.ke
