KRA Goes After Sugarcane Farmers in New Tax Laws After Avocado Uproar

The Kenya Revenue Authority (KRA) and the Butali Sugar Mills have issued a notice to sugarcane farmers over changes in tax and salary payment.

In a statement, Butali Sugar Mills indicated that the decision was reached after a series of meetings between the sugar milling company and KRA.

With effect from April 1, the farmers were directed to issue an e-TIMS Invoice for every cane supply or delivery made to the factory or risk not getting payment.

However, the mill’s management stated that it would continue consulting with the taxman to find an amicable solution to implementing the new KRA laws.

“We will be unable to process and pay you for cane delivered unless you as our farmers provide us with a valid Electronic Tax Invoice.”

“We have held a series of meetings with KRA with a view to resolving this in a more simplified way but to date an amicable solution has not been found but we continue to have discussions with them and hopefully we agree on a simplified way to resolve this in the coming weeks,” the statement read in part.

Also Read: UDA MPs Feel Heat as KRA Moves to Tax Avocado Farmers

Other Regulations Issues to Sugarcane Farmers

At the same time, the farmers were asked to make use of e-TIMS Lite to access the invoicing solutions through USSD *222#.

“Effective 1 January 2024 any business expenditure not supported by a valid electronic tax invoice shall not be deductible for income tax purposes. A copy of the detailed process of using this USSD code is available in all our satellite offices,” added the notice.

Farmers who experience challenges with the invoicing processes were directed to visit the KRA offices for further direction.

“We recommend that you use this and in the event of facing challenges you are requested to visit your nearest KRA offices for assistance. In our case you can go to any of the following KRA offices in Kakamega, Bungoma, Kitale, Eldoret,” noted Butali Sugar Mills.

Also Read: KRA Explains New Way to Register for eTIMS as Deadline Approaches

Avocado Farmers Chase Away KRA Officers

Following the implementation of the e-TIMS invoice systems, officers from KRA have been conducting sensitization forums for small business owners especially in rural areas. 

However, in February, a video surfaced online showing residents in Kandara Constituency, Murang’a County chasing away the officers. 

The officers were depicted in the video trying to explain that the farmers selling their produce will be required to provide e-TIMS receipts showing the particulars of the sale as reference to the taxman.

The farmers in response shared their reservations against the proposed changes requiring them to offer receipts for their sales.