A sorghum farmer inspects his crop. Agribusiness players say the reduction in prices of sorghum has been a result of the increase in the excise duty on keg beer. PHOTO | FILE |
What you need to know:
Keg beer tax remission was halved from 100 per cent wreaking havoc on the previously thriving EABL business segment and sorghum farming.
Treasury introduced the 50 per cent excise tax on the keg beer in the 2013/2014 Budget as it argued beer drinkers had shifted to the alcoholic drink due to the low prices yet the exchequer was not benefiting.
IEA plans to put together the presentations from various economic sectors and forward them to the Treasury for consideration in Budget making.
Agribusiness players say excise duty on keg has raised the beer price from Sh30 to between Sh45 and Sh50, slashing farm-gate prices 80 per cent.
The Keg beer tax remission was halved from 100 per cent wreaking havoc on the previously thriving East African Breweries Ltd business segment and sorghum farming.
“The reduction in prices of sorghum has been a result of the increase in the excise duty on keg beer. This duty ought to be removed,” said Hellen Nyamera, projects officer at Kenya Producers Coalition, an NGO working with farmers.
Ms Nyamera was making a presentation at the pre-budget hearings organised by the Institute of Economic Affairs (IEA) at the Sarova Stanley Hotel in Nairobi Wednesday.
The IEA plans to put together the presentations from various economic sectors and forward them to the Treasury for consideration in Budget making.
Kwame Owino, IEA chief executive, said sorghum prices had fallen to a level that could no longer support the producers.
“This is a matter of concern because many producers are affected,” said Mr Owino.
The Treasury introduced the 50 per cent excise tax on the keg beer in the 2013/2014 Budget as it argued beer drinkers had shifted to the alcoholic drink due to the low prices yet the exchequer was not benefiting.
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