Government announces new levies on food crop imports and exports
The government intends to operationalise the food crop regulations gazetted in 2019 starting in July, imposing new levies on imports and exports.
This means that cereals, legumes, pulses, and roots or tubers will be subject to tax, as announced by the Agriculture and Food Authority (AFA) on Tuesday.
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In a public notice on Tuesday, AFA Director General Bruno Linyiru said the new levies are in line with Regulation 37 of the Crops (Food Crops) Regulations, 2019.
"Pursuant to provisions of these regulations, the authority through the Food Crops Directorate, hereby notifies all food crops importers and exporters that, starting July 1, 2024, the imposition of levies will commence as provided," reads the notice.
This change is expected to have a big impact on both local and international traders, possibly affecting prices and supply chains.
The new levies are part of the government's plan to increase its revenue.
For roots and tubers, the import tax is set at 1.0 per cent, with a 0.3 per cent tax on exports.
Legumes and pulses imported into the country will be subjected to a 2.0 per cent customs charge, with exports facing a 0.3 per cent levy.
Cereal imports will incur a 2.0 per cent customs value charge while exports will be taxed at 0.3 per cent.
The Crops (Food Crops) Regulations, 2019, was created to guide the promotion, development, and regulation of the production, processing, and trade of scheduled food crops.
The regulations were drafted by the AFA, the Agriculture ministry and other stakeholders
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