Gov’t imposes levy on imports, exports of food crops produce
By K24 Editorial, May 28, 2024The Ministry of Agriculture and the Agriculture and Food Authority have notified food crops importers and exporters of a new levy that will affect their businesses.
The Agriculture and Food Authority announced that the new levy will come into effect starting July 1, 2024. In a notice published on MyGov on Tuesday, May 28, 2024, the state cooperation maintained that the rates for the levies will be tabulated in the Third Schedule of the Crops Regulations 2019.
“Pursuant to the provisions of these regulations, the Authority through the Food Crops Directorate hereby notifies all food crops importers and exporters that starting July 1, 2024, the imposition of levies will commence as provided for in regulations 37 sun regulations (1) to (8) of the Crops (Food Crops) Regulations, 2019. The rates for the levies will be as tabulated in the Third Schedule of the Crops (Food Crops) Regulations, 2019,” the notice read in part.
The commodities set to be levied include cereals, legumes, pulses, roots and tubers.
“You are required to take note of this development and prepare to comply,” the Agriculture and Food Authority directed all importers and exporters.
The imposition of the new levies followed the gazettement of the regulations in December 31, 2019. The regulations were drafted to help promote local businesses and farmers thrive in the agricultural sector.
Defending its implementation
While supporting the new levy, the government argued that big economies across the world have strong domestic industries and Kenya needs to fully support the local manufacturing sector to create a self-sufficient economy.
The government further indicated that the levy will create a level playing ground for small and large-scale farmers in the country.
Stakeholders oppose
A section of stakeholders however opposed the new levy arguing that the proposed levy may ward off potential investors and further hurting the economy.
AAA Growers Limited was among the firms that raised concerns over the new levy. AAA Growers Limited said the proposed levy will lead to an increased cost of production especially for local industries that import consumables to process their goods or products.
The firm that many manufacturers were already reeling under the impact of rising costs of production some occasioned by the levies paid to different regulatory bodies and imposing of another levy will hurt the already struggling sector.
“The many levies we pay are already taking a toll on the efficiency of the businesses reducing the profit margins significantly; another levy will not attract investors into the country. The ministry is also not clear on the rates of the proposed levy,” AAA Growers Limited stated.
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