Gathoni Wa Wamuchomba, the Member of Parliament for Githunguri, has criticized the government for introducing a tax on farm produce, despite assurances from the government that it will reconsider the law.
The newly implemented tax, which came into effect last month, will require farmers to pay at least Sh5 for every Sh100 they earn from their agricultural produce.
Wamuchomba condemned the provision as oppressive to farmers, majority of whom form her constituents.
“I repeat, Finance Act 2023 is punitive and oppressive to farmers and small businesses. This means farmers have to pay five percent of their sales,” Wamuchomba complained.
The MP highlighted the additional burden imposed by the yet-to-be-launched Social Health Insurance Fund (SHIF), which is set to replace the National Hospital Insurance Fund (NHIF).
“Small traders who earn Sh1 million per year are expected to pay 3% of their annual income tax, plus 1.5% for the housing levy, in addition to NHIF and SHIF. This is unacceptable!” Wamuchomba exclaimed.
She urged for a review of the Finance Act 2023, arguing that it places excessive burdens on Kenyan citizens.
“This needs to be revisited. If Parliament fails to act, the people will take action. God is with us,” Wamuchomba asserted.
In an unexpected turn, Deputy President Gachagua acknowledged on Friday that there are errors in the Finance Act 2023 that need to be addressed. He emphasized that the government cannot claim to support farmers while simultaneously imposing oppressive taxes on them.
The Deputy President Rigathi Gachagua further added that the provision for the tax in the Finance Act 2023 will be re-evaluated to better accommodate the needs of farmers.
Gachagua’s statement comes in response to widespread opposition from farmers regarding the proposed 5% withholding tax on agricultural products.
“On the issue of taxes passed by Parliament, we have realized there are mistakes, especially regarding taxes on farmers. I have discussed this with the President and the Treasury CS (Njuguna Ndung’u), and we will engage with our MPs. We cannot claim to support farmers while simultaneously oppressing them,” Gachagua stated.
He made these remarks during the Embu Livestock, Dairy, and Fisheries Exhibition held at Kalro grounds in Embu town.
