Agriculture Cabinet Secretary Peter Munya has vowed to engage the National Treasury on reduction or zero rating of taxes and levies on agricultural inputs, machinery and fishing equipment to make farming attractive especially to the youth.
Speaking at the fourth Intergovernmental Agriculture Forum in Mombasa, Munya said the high cost of farm inputs and pesticides is contributing to low productivity.
The cost of agricultural production in Kenya are high when compared to Tanzania and Uganda mainly due to lower taxes.
In 2020, National Treasury imposed a 14 percent VAT on farm equipment such as ploughs, harrows, planters, sprayers, harvesters and balers.
Local farmers have also been plagued with high cost of seeds, fertilizer and pesticides.
While the acknowledging the need to reform the agricultural sector through strengthening of intergovernmental relations and enhancing accountability, Munya noted that all agriculture data systems at both levels government will be linked to Kenya Management Information System within the next one month.
Delegates called for finalization and enactment of the Cooperative Bill 2021 and implementation of reforms in the cooperative movement to instill efficient management practices.