The Ministry of Agriculture says it will initiate talks with the Treasury with the view to having the 16 per cent value-added tax (VAT) levied on vegetable seed abolished to make Kenya’s produce competitive in the market amid cheap imports.
Agriculture and Livestock Principal Secretary Harry Kimtai said the tax has made it expensive for farmers to engage in profitable business, especially in the wake of cheap imports from countries such as Tanzania reports www.businessdailyafrica.com
He said they have engaged the Seed Trade Association of Kenya (STAK) on how the issue can be addressed and have agreed to have a meeting that will give recommendations.
Mr Kimtai said the high cost of seed locally has seen some farmers source the commodity from neighbouring countries even as they are not sure whether they meet the required standards.
“The Ministry of Agriculture will advise the National Treasury to consider removal of vegetable seed because that has proved to make farming costly for farmers,” said Mr Kimtai.