Kenyan minister supports cotton sector
Kenya’s agriculture minister, William Ruto has submitted a proposition to the government asking it to completely cut VAT on locally produced goods, with a particular emphasis on ginned cotton. Mr Ruto also suggested that higher duties should be imposed on imported cotton and clothing.
He claims: “Ginners who buy cotton from farmers, have to pay 16% VAT when selling it to the textile mills and in an industry which is mired in recession, sufficient incentives have to be provided and waiver of VAT is a step in the right direction”.
Mr Ruto also announced that cotton seeds would now be manufactured by Kenya Seed Company and registered seed merchants will now have to be certified by the Kenya Plant Health Inspectorate Services.
The minister has suggested that cotton prices are kept at Sh30 ($0.37) per kilo to encourage spinners to buy from local producers and that the provision of free seeds should be discontinued as it was unsustainable.
