Business

State hits importers, exporters of food crops with new levy

Wednesday, May 29th, 2024 09:42 | By
Food crops. PHOTO/Vanguard News
Food crops. PHOTO/Vanguard News

The government has announced the imposition of new taxes on imports and exports of all food crops produce starting July 1.

Agriculture and Food Authority (AFA) Director General Bruno Linyiru yesterday in a notice published in one of the local dailies informed traders to prepare to start paying the new levies as stipulated in the Crops (Food Crops) Regulations, 2019.

Exporters and importers of legumes and pulses, cereals and root and tubers will pay new levies of between 0.3 per cent and 2 per cent of custom value starting July 1, 2024.

“Importers of cereals will pay 2 per cent of the customs value of the cargo, an indication of an increase in the cost of doing business. While cereals exporters will pay a custom value equivalent to 0.3 per cent of the commodity being shipped out of the country,” said Linyiru. 

He added: “Any legumes being imported into the country will be charged 2 per cent and exports will be levied 0.3 per cent.  And root crops being imported into the country will charge one per cent and 0.3 per cent to exports.” 

AFA, he said is charged with the responsibility of operationalising the Crops Act 2013 enacted in 2013.

The cabinet secretary is vested with powers to make regulations for better carrying into effect the provisions of the ACT in consultation with the authority and county governments, according to the notice.

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