House mulls over tax cut on sorghum beer
What you need to know:
- Igembe North MP hands over petition on behalf of farmers in Meru.
- Reduced prices hurting growers.
The National Assembly is set to revisit a proposal to reduce the excise duty on beer made from sorghum and millet.
This follows the submission of a petition to the House by Igembe North MP Joseph M’Eruaki on behalf of farmers from Meru.
Mr M’Eruaki said reduction in production of the beer had reduced the price of sorghum, which had directly affected income for growers.
“The government did not consider the impact of the legal notice in regard to the welfare of its citizens, and in particular, the sorghum farmers,” said Mr M’Eruaki.
Petitioners have asked the Finance, Trade and Planning Committee to obtain a commitment from the Treasury Cabinet secretary to degazette the notice that brought into effect the higher excise duty.
Kikuyu MP Kimani Ichung’wa made an attempt last year to include a provision on the reduction of the excise duty in a Bill he had sponsored to amend the Alcoholic Drinks Control Act.
Mr Ichung’wa said that after he was stopped and the matter referred to the Budget and Appropriations Committee, he had consulted sorghum and millet traders from Meru and Tharaka Nithi as well as farmers from Kericho.
He asked the Speaker to get the Budget Committee to give its position on the matter as it handles the petition presented by Mr M’Eruaki.
Mr Muturi said the petition would also be handled by the Finance committee, which would give MPs with an interest in the matter a chance to make their contributions.
DEAD AGRICULTURE AREAS
Johana Ng’eno (Emurua Dikirr, KNC) said most agricultural areas were dead and the reason most farmers resorted to growing sorghum was because they thought it would be a useful venture.
“It is very unfortunate that today, farmers who have been growing this crop are meeting a lot of challenges, especially to do with places to sell simply because this Parliament passed a law to overtax the brewer,” said Mr Ng’eno.
East African Breweries Ltd reduced production of Senator Keg after the Treasury introduced 50 per cent excise duty on cheaper beers.
This reversed a 2006 decision made to enable consumers of low-end alcohol to have a healthy alternative.
The government’s intention was to collect Sh6.2 billion in revenue from the additional tax.
