Flower Industry meets Nakuru County over taxes and Levies

The flower industry held a meeting with the Mr. Francis Mathea, the Executive Member (CEC) for Finance and Planning, Nakuru County on March 4, 2014 to put in a petition on taxes and levies demanded through the Finance Act 2013.  The following were the outcomes;

1.       The CEC highlighted that land rates have been revised downwards from 2.5 to 2% per annum based on the valuation roll.

2.       Further, he agreed to consider reducing   greenhouse plan approval fees from ash 3 per square meter to encourage expansion as well as entry of new investors.

3.       On horticultural Cess, the CEC agreed to abandon the demand for 1% on gross turnover and base the charge on volumes exported.

4.      It was proposed that County to consider charging Kshs 0.20 per kg for horticulture cess.   This is over and above what is currently being paid to HCDA.

5.       The Nakuru County will work with the industry to mobilize the other 12 counties to meet with the CS  Felix Kosgey Ministry of Agriculture to understand how policy will guide the horticulture cess  of  Kshs 0.30 cess,  on how it will be passed  on to counties, in line with the Constitution. This is informed by the fact that all functions of agriculture have been devolved except for policy and capacity building which remains with the Ministry of Agriculture.

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