The 42 taxes spoiling taste for tea farmers

[Arcadian_Dreamer]

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October is the most watched month in the tea calendar since it is the time when the bonus or what is also called the lump sum is declared.

But by the time this windfall hits bank accounts of over half a million farmers in the country, this bonus will have been subjected to at least 42 tea taxes from multiple agencies.

The taxes are paid from the moment the tea leaves farms to the factory, then to the warehouses, Mombasa auction all the way until they are shipped out to the to their final destination. Besides the Kenya Revenue Authority (KRA), tax accountants in the sector have to deal with over 10 other agencies.

Farmers end up shouldering this heavy burden of multiple and duplicating taxes that are structured to punish the grower in an industry that is already hurting from the effects of the Covid-19 and mismanagement.

https://www.nation.co.ke/kenya/business/the-42-taxes-spoiling-taste-for-tea-farmers--1920296

RIDICULOUS! 42 taxes, that has to be a record. A GST tax would be ideal in Kenya, but the usual suspects would steal it and not pass the revenues to the counties.

[RV Pundit]

Indeed. And this is not restricted to the tea but entire manufacturing.

After we are done with :ease of doing business: we need to try to bring down the cost of business - starting from all these ridiculous taxes and fees - to electricity cost

[Arcadian_Dreamer]

Indeed. And this is not restricted to the tea but entire manufacturing.

After we are done with :ease of doing business: we need to try to bring down the cost of business - starting from all these ridiculous taxes and fees - to electricity cost

 WHAT?

Kenya is an extremely hostile environment for doing business. This is almost like self sabotage. Reminds one of the tax situation of pre revolutionary France where a peasant faced on average 300 taxes. Politicians and bureaucrats are brain dead in this country.

[Njuri Ncheke]

Yes no wonder Kenya industrialization is a mirage too much red tape. Munya can do wonders on this sector and let politics take a back seat. Also explains why tea farmers blow their bonus on alcohol and prostitutes. I hear prostitutes from as far as nyeri and mombasa arrive in rift valley when bonuses are paid, kalenjin farmers abandon their families for weeks till when broke. Interesting how one can blow hard earned money that way.

[hk]

October is the most watched month in the tea calendar since it is the time when the bonus or what is also called the lump sum is declared.

But by the time this windfall hits bank accounts of over half a million farmers in the country, this bonus will have been subjected to at least 42 tea taxes from multiple agencies.

The taxes are paid from the moment the tea leaves farms to the factory, then to the warehouses, Mombasa auction all the way until they are shipped out to the to their final destination. Besides the Kenya Revenue Authority (KRA), tax accountants in the sector have to deal with over 10 other agencies.

Farmers end up shouldering this heavy burden of multiple and duplicating taxes that are structured to punish the grower in an industry that is already hurting from the effects of the Covid-19 and mismanagement.

https://www.nation.co.ke/kenya/business/the-42-taxes-spoiling-taste-for-tea-farmers--1920296

RIDICULOUS! 42 taxes, that has to be a record. A GST tax would be ideal in Kenya, but the usual suspects would steal it and not pass the revenues to the counties.

Taxation and over regulation is what's crippling kenya economy. The government is totally embedded into Kenya economy through taxation and regulation. Agriculture and all other sectors don't need more budget allocation but structural reforms and liberalization.  Government regulatory bodies are impediment to economic growth. Now even horticulture is under threat due to overreach of government.