Agriculture Cabinet Secretary Mutahi Kagwe has called for a review of taxes and levies imposed on horticultural producers, saying some of the charges are unfair and are increasing the cost of doing business in the sector.
Speaking during the Naivasha Horticultural Fair, Kagwe said horticultural growers should not be treated as industrial manufacturers for taxation purposes, arguing that they are agricultural producers.
He said he would engage the Treasury and Trade ministries on the need to review taxes and levies that are hampering the sector’s growth.
Kagwe also acknowledged concerns over unpaid Value Added Tax refunds, saying the government would take up the matter with the National Treasury.
The call comes as horticultural farmers face rising production costs, driven partly by higher fuel and freight prices.
Kagwe said reducing the cost of doing business would help the sector remain competitive, attract investment, create jobs and increase foreign exchange earnings.
He stressed that economic growth comes through increased production rather than excessive taxation.