Govt told to scrap multiple taxes on tea
A tea estate in Konoin, Bomet County. MPs want roads in tea growing belts improved. PHOTO | FILE | NATION MEDIA GROUP
What you need to know:
- Savula said the 2.5 percent management levy charged on small-scale growers should be scrapped as it is inhibiting investments in the sector.
Former Bomet Governor Isaac Ruto and five MPs have called on the government to scrap the multilevel taxations in the tea sector, saying they are eating into small-scale growers’ earnings.
Nandi Hills MP Alfred Keter, Mr Ayub Savula (Lugari), Mr Brighton Yegon (Konoin), Mr Gideon Koskei (Chepalungu), former Konoin MP Sammy Koech and six members of Bomet and Kericho county assemblies also want the national and county governments to improve roads in the tea growing belts to ensure the crop is delivered to markets on time.
“The multilevel taxation in the sector is hurting small-scale tea growers, who are paid peanuts by the Kenya Tea Development Agency while brokers in the Mombasa tea auction are raking in millions of shillings," Mr Ruto said.
Mr Savula said the 2.5 percent management levy charged on small-scale growers monthly by KTDA should be scrapped as it is hurting farmers and inhibiting investments in the sector.
