Commodities Dairy farmers face cost inflation in new tax BillA worker at the New KCC factory in Kiganjo, Nyeri sorts milk powder cans on July 6, 2019. PHOTO | GRACE GITAULivestock farmers will pay more for animal feeds if the tax Bill to be discussed in Parliament as early as this week is passed and the President assents it into law, manufacturers have warned. Tax Amendment Bill 2020 that comes with far-reaching reforms, calls for the introduction of 16 percent value-added tax (VAT) on major ingredients used in making of animal feeds. “The introduction of VAT on key ingredients that we use in making feeds will increase the price of the meals, which will have to be absorbed by the farmers,” said Joseph Karauri, the chairman of Akfema. The said ingredients make 60 per cent of the production cost of the animal feeds according to Mr Karauri.

Source: The North Africa Journal April 08, 2020 18:45 UTC