Writes Leo Odera Omolo.

DISCONTENT has arisen in DISCONTENT the three highly agriculturally productive regions in Western Kenya following claims and allegations that the tax regime and the KRA have unrealistic increase the highest percentage of VAT charged on farm inputs and implements.

Previously farm inputs did not attract any taxation. Exempted from paying duties included trucks, tractors,and all the equipments used in farming.

However, according to the VAT Act, which was recently enacted by parliament, all these machineries now attract tax of 16 per cent, making them inaccessible to the farmers.

At the same time the Vat taxation system, it is being alleged, has exempted equipments used in the building construction industry.. Analysts say the construction work is only booming in Central Province and in the capital, Nairobi.

The players in the agriculture sector see some elements of discriminative taxation by the tax regime, which is deliberately and systematically targeting the communities living in the three Agriculturally rich Western Kenya region consisting of the Rift Valley, Nyanza and Western Provinces

Members of parliament representing the various electoral constituencies, which are close to maize producing, sugar cane growing and other areas with high insensitivity of farming have been asked to come out of their slumber .They should introduce motions in both Parliament and in the Senate challenging this discriminative taxation,” said one key player in the agricultural sector who requested for his identity to be kept secret for fear of possible reprisal.

The highly mechanized sugar industry is the hardest hit. There are so many prohibitive taxes charged such as ncess. “If the situation remain unaddressed for long, then Kenya will not be able To beat the COMESA deadline, “hr added.

A visit by this writer in the farming regions 0f Trans-Nzioia, Uasin Gishu, Nandi, Kisumu, Kericho and Trans-Mara region revealed that due to heavy VAT taxation now imposed on tractors and other farm inputs farmers can no longer afford to purchase new tractors and other farm implements owing to the skyrocketing prices..

VAT charges have also affected the sales of spare parts. One key player in the sugar industry6 asserted that may be there is a cartel of top government officials working in cohorts with the sugar barons to facilitate the importation of the same commodity so that they in turn could make a kill.. MPS should demand an explanation as to whether the high VAT taxation has any elements of political undertone aimed at the economic strangulation against the communities living 8in the agricultural productive regions in Western Kenya..

If It is true, as it is being alleged, that there is a cartel among the government officials collaborating with the sugar barons with the intent of creating artificial shortage of sugar in the country for their own selfish interests then the sooner such groups would be kicked out of Treasury and the KRA the better. It is sad that such people who are out to impoverish members of the farming fraternity.

The tea industry is another sector which is highly mechanized, which is also suffering from the effect of the heavy VAT taxation system.,

The government should set up a parliamentary committee to investigate allegations about unnecessarly high taxation imposed through Vat so that it could protect the farming community. Unless something positively is done to streamline the excesses in Vat taxation the country could in the near future experience acute shortage food grains.

Companies dealing in the sales of farm inputs have also reported sharp decline in business, which has seen the sales going down with huge percentage .No inquiries about the sales of new tractors, trucks and pick-ups are forthcoming, said one dealer in Eldoret, adding that the government need to move much faster and have the VAT btaxati9n rectified.

Sugar cane is grown in abundance in Western and Nyanza Provinces, whereas maize, wheat, barly is produced in the South Rift region of Narok County and some parts of Uasin Gishu, Tea is grown and produce in the North Rift regions of Nandi and also in the South Rift counties of Kericho, Bomet and also in parts of Trans-Mara.

Other areas where farming is thriving in the ift alley included Nakuru, Molo, Kuresoi,Naivasha, Gilgil, Subukia, Rongai and Molo.

ENDS