Kenya’s new food tax risks trade spat with Tanzania
Kenya’s new 2.0% food import levy on cereals and legumes, introduced by the Agriculture and Food Authority (AFA), is causing tension between Kenya and Tanzania. The levy, which requires traders to pay an additional Ksh20,000 per truckload of maize and Ksh50,000 for rice, adds to existing costs. Traders have expressed concerns about the financial impact, with some saying the levy could harm business by increasing the cost of imported goods.
A new food import levy imposed by Kenya’s crops regulator risks triggering a fresh standoff between Kenya and Tanzania amid protests by traders.
The 2.0 percent levy on the customs value of cereals and legumes entering Kenya— introduced by the Agriculture and Food Authority (AFA) this week — will see traders pay an extra Ksh20,000 per truckload of maize and Ksh50,000 for rice. This is in addition to other charges the traders have been paying to different government agencies.
“For example, if I have a truck carrying rice from Tanzania worth Ksh2.5 million and AFA adds a new levy of 2.0 percent on custom value, which is around Ksh50,000. This is not good for business people in Kenya” a trader who spoke to Business Daily on Tuesday said.
Source Link : https://www.thecitizen.co.tz/tanzania/news/business/kenya-new-food-tax-risks-trade-spat-with-tanzania-4726106
