Farmers demand Sh12b tax refund from the state

Kenyan Farmers [Photo: Down to Earth]

The Agricultural Employers Association (AEA) is demanding 12 billion shillings as value added tax refunds from the government that has accrued in the past three years.

The association says the refunds could be used to cushion them against the ongoing drought and harsh economic conditions.

Association CEO Wesley Siele says the drought had affected the agriculture sector heavily, leading to a drop in production.

“The government owes farmers between Sh10 billion and Sh12 billion in tax refund and this can go a long way in expansion and addressing emerging challenges,” he said.

This comes after the Kenya Revenue Authority had stopped payment of tax refunds and instead, it has been offsetting overpaid duties against future tax obligations.

The Finance Act, 2022 however amended Section 47A of the Tax Procedures Act, 2015 by introducing a provision where a person may be allowed to apply for a refund.

Siele then noted that prices of fertilizer and its availability had stabilized in the last two months.

“We are happy that the issue of fertilizer, which was a major concern for farmers, has been sorted amid rising demand for calcium nitrate by flower farmers.”

Labour Cabinet Secretary Florence Bore lauded AEA for its role in ensuring there was no industrial action in the sector.

“In reviewing the status of industrial relations in the country in the last four years, the agricultural sector has remained stable and calm as opposed to others,” she said.

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