We will strike if you tax our goods warn Kenyan Farmers

Kenya Farmers have threatened to stage a nationwide demonstration if parliament agrees to pass the Value Added Tax Bill 2012.

The Bill proposes a standard 16 per cent tax rate for various agricultural and food products and services, which had previously been either zero-rated or exempted from taxation.

If passed into law, the Bill would affect several items including fertiliser, pesticides, maize flour, wheat, cotton gin, water pumps and farm machinery.

 

The farmers, through the Kenya National Federation of Agricultural Producers (KENFAP), emphasized that the passing of the bill would be a death sentence to the growth of agriculture in the country.

 

Livestock development Assistant Minister Dhadho Godana, said that the threat by the farmers had been received by his ministry and measures to reduce injury to farmers would be considered.

“We do not want to create disharmony. My hope is that MP s will support the farmers,” Mr Godana said

According to the John Mutunga, CEO KENFAP, taxation will lead to increased cost on agricultural inputs that are already too expensive for the small scale farmer to purchase.

He further stated that Kenya lacks sufficient resources to allow the treasury to tax agriculture, which is a main source of income for many Kenyans.

“The treasury is far from reality, if we had minerals than they can tax anything. 51 per cent of the economy comes from agriculture, if it is not supported the economy will collapse. We say no to the bill, “Mr Mutunga said.

Mr Nduati Kariuki, Chairman KENFAP, said that the farmers will fight the bill to the end, adding that any MP that will support the bill will be marked to be eliminated from parliament.

“We will not be stepped on. We will campaign against any MP that supports the bill and ensure they do not go back. We will elect only farmer friendly people,” Mr Nduati said.

Mr Mutunga further stated that farmers would not be forced to use genetically modified products that have not been tested by local scientists.

He added that 2 per cent that is allocated to research should focus on agricultural research that will bring national development and increased productivity.

“Technological advances can be beneficial to farmers, but if they cannot be verified locally, keep them out. Research should be done in consultation with the farmer for useful results,” Mr Mutunga added.

KENFAP addressed the press at the national farmers’ conference at Bomas of Kenya in Nairobi, where they further stated, that farmers need to understand the law and identify opportunities in the new regions brought by devolution.

“We want farmers to be able to have mass production in a single county. They need to let go of abstract thinking and know that they can other things except agriculture, “concluded Mr Mutunga.