Ruto is now targeting farmRuto is now targeting farmers,new tax proposals
The administration of President William Ruto now intends to pursue additional taxes, presumably in an effort to generate additional money, with a focus on farmers this time around.
According to Treasury Cabinet Secretary Prof. Njuguna Ndung’u’s medium-term revenue strategy, the government now wants farmers who bring their produce to markets to pay Ksh. 5 for every Ksh. 100 they receive from sales. According to CS Ndung’u’s medium-term revenue plan, the agriculture industry is undertaxed.
According to the publication, “The agricultural sector is the largest employer compared to other sectors and contributes an average of 21.2% of the GDP to the Kenyan economy.”
Treasury recognizes that the industry faces particular difficulties, which makes taxes challenging. 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.
Accordingly, Ksh. 5 of every Ksh. 100 a farmer receives in the market will go to the government.
The government will step up taxpayer education to make sure that people understand their part in nation-building and the necessity of paying taxes in order to accomplish the maximum taxes. Parliament will allow the public to comment on the Treasury plans.
