Cane farmers in Kenya face losses from switching to eTims invoice

Published 2024년 4월 8일

Tridge summary

Thousands of sugarcane farmers who supply to Butali Sugar Mills in Kenya are at risk of facing significant losses due to a new mandate from the Kenya Revenue Authority (KRA), which requires all business transactions to be processed through the electronic Tax Invoice Management System (eTIMS) starting April 1, 2024. The miller has notified the farmers that without an e-TIMS invoice for each cane delivery, it will not be able to make payments. Despite efforts to negotiate a more manageable system with the KRA, no agreement has been reached, leaving the farmers in a difficult situation as they try to comply with the new invoicing requirement.

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Original content

Thousands of sugarcane farmers supplying Butali Sugar Mills are staring at possible losses on their cane that could stay longer in farms after the miller asked them for invoices through the electronic Tax Invoice Management System (eTIMS). In a circular, the miller on Wednesday said attempts to get a simpler way that accommodates the farmers' needs from the Kenya Revenue Authority (KRA) flopped. Read: Farmers, small traders to file eTims invoices The KRA set March 31 as the deadline for all businesses to onboard on eTIMS, a system that provides it with visibility of business-to-business transactions, for cross-verification of tax claims by different businesses. “As a result of the above, with effect from 1st April 2024, each farmer is required to issue an e-TIMS invoice for every cane supply/delivery made to the factory. We will be unable to process and pay you for cane delivered unless you as our farmers provide us with a valid Electronic Tax Invoice,” the miller said in the ...

Source: Businessdailyafrica