VAT on Vegetable Seed; Wrong Classification of Pepper, Water Melon, Coriander and Peas
STAK continues to lobby for the removal of VAT on vegetable seed and reclassification of pepper, water melon, coriander and peas. STAK under the umbrella of Agriculture Sector Network (ASNET) met with a team from Treasury on the 14th November, 2021 and discussed a memorandum that was presented on the Finance Bill 2022/23. The meeting discussed the issue on VAT on Vegetable Seed and the fact that our neighbors, Tanzania and Uganda, are more competitive since their vegetable seed does not attract VAT. The potential of the industry is an annual 5 Billion Kenya shillings besides providing employment opportunities to up to 4 million youth and women that needs to be tapped.
STAK has also been informed that reclassification of pepper, water melon, coriander and peas is not a budgetary issue and should be addressed by Kenya Revenue Authority.