RATIN

EAC told to reduce taxes on farm inputs

Posted on July, 22, 2016 at 10:12 am


The East African Community member states have been asked to harmonise taxes on agricultural products to promote free trade.

“Despite the high cost of production on food crops in countries like Kenya where farm inputs such as fertilisers are expensive, free trade is good for the market and business.

VAT of food items, however, remains a challenge,” the EAC customs and trade director general Peter Kiguta said, adding farmers stand to benefit more.

He was speaking during the launch of the G-Soko grain trade directory which seeks to facilitate information sharing amongst grain traders in the region.

Kiguta said although EAC has zero-rated taxes on grains and some goods, some countries are still levying taxes on food items, making imports more expensive.

Eastern Africa Grain Council chairman Dr Bernard Otim said taxation of agriculture products is hindering free trade across the East Africa region.

“There is need to harmonise excess and import duties on some commodities within the region. Taxation on inputs should also be considered so that farmers, traders and suppliers can get inputs such as tractors and processing equipment like driers to enhance productivity,” Otim said.

 

Source: The Star