In many instances, locally-packaged products are unable to compete with the imports on price. Agriculture Cabinet Secretary Peter Munya said the ministry had prepared a memo that will be presented to the Cabinet in the course of this month proposing removal of VAT on tea and coffee packaged and sold locally. “We will be proposing a review of the VAT Act to make sure that tea and coffee are zero-rated. All other food crops do not pay VAT but it is there on tea and coffee and this tends to reduce earnings for farmers,” he said. Shied away “Imposing VAT on the two products has also made it difficult for local players to get into value addition.” Subscribe to Our Newsletter Subscribe to our newsletter and stay updated on the latest developments and special offers! Tea traders have in the past noted that taxes are among the reasons why investors have shied away from venturing into value addition. This has led to Kenya exporting thousands of jobs in the two value chains to other ...
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