- Kenya plans to cut VAT on horticulture inputs from 16% to 8% to lower production costs and boost flower exports.
- The move aims to address industry concerns such as high air freight costs, cargo shortages, delayed VAT refunds, taxes, and market barriers.
- Flower growers have long complained that the government owes them over Sh10 billion in VAT refunds; some industry players want the inputs zero-rated instead.
- The government says it will keep working on faster refunds, better regulations, lower compliance costs, stronger logistics, and wider market access.
- Kenya’s floriculture sector earns about Sh110 billion a year, employs over 200,000 people directly, and is a major exporter to Europe, the UK, the Middle East, and Asia.
Source: the-star.co.ke
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
