Agriculture Minister Mutahi Kagwe has assured tea farmers that the new 0.8 percent export tax will not reduce their earnings.
Minister Kagwe said the tax introduced by the Tea Board of Kenya will be paid only by exporters. He added that 50 percent of the revenue collected will be used to protect and improve farmers earnings. The 0.8 percent levy applies to tea sold through auctions or direct exports. Importers from abroad will pay 100 percent of the value of processed tea to safeguard local farmers. Small scale farmers cooperatives and local consumers will not be affected by the tax. It is expected to raise Sh1.42 billion annually from exports and imports.
