Stakeholders in the agrochemicals sector have asked for the removal of the 16 percent Value Added Tax on agricultural pest control products.
Eastern Africa Farmers Federation Chief executive Stephen Muchiri says the introduction of the tax will have negative effects and will reverse the gains made in the agricultural sector.
Muchiri says that with the reintroduction of the VAT, there shall be more than 50 percent increase in the cost of production for farmers, increased food prices and increased dependency on food imports.
“We also expect that there shall be increased counterfeit pesticides in the market as well as loss of income and livelihoods sir small scale farmers,” he added.
Agrochemicals Association of Kenya CEO Evelyn Lusenaka says that there shall be increased counterfeit pesticides in a market where 18 percent of total counterfeits in the country are pesticides.
Previously, the pest control products were zero-rated but in July, President Uhuru Kenyatta assented to the tax law amendment that introduced a 16 percent VAT.