Lovers of pork sausages may have to pay more for the delicacy from February 1 after Farmers Choice, one of the leading producers of the product, announced possible price hikes.
Kenyans to pay more for sausages from February
Traders moving goods within different counties are forced to pay taxes in the different counties they operate.
This comes after the Kenya Revenue Authority, on behalf of the Nairobi City County Government directed that all livestock received at the facilities be charged a levy, regardless of whether they have been charged at their county of origin.
“The Kenya Revenue Authority (KRA), acting on behalf of the Nairobi City County Government on revenue collection, has directed that cess/landing fees for all livestock received at our slaughterhouse be paid to the county government. Regardless of whether the same has been paid in the county of origin,” the company through a circular said.
Initially, the producers and the taxman had an agreement which exempted tax for livestock whose fees had been paid at the source.
George Monari the Farmers Choice Pig Procurement Manager said the double taxation will force the company to hike its prices for pork sausages as they engage the county government on the new directive.
“Following this directive, please note we shall effective 1st February 2022 deduct the Cess as prescribed in the LPO, for remittance to Nairobi City County government.
"We are however appealing the directive, noting that the decision results to increased cost of doing business for all stakeholders. We shall keep you informed of the outcome of our negotiations,” part of Monari’s circular read.
Businesses operating in different counties are forced to pay double taxes in every county they operate from, which raises the cost of doing business further hiking the prices of commodities.
To avoid double taxation, the Kenya Revenue Authority (KRA) has come out to be the sole tax collector. The double taxation has also led many investors to shun doing business within different counties.
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