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Deputy President Rigathi Gachagua on Friday said the provision for the tax in the Finance Act 2023, will be reviewed to suit farmers' needs.
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His remarks followed a backlash from farmers after the government sought a 5 per cent withholding tax on farm produce.
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Githunguri MP Gathoni Wa Wamuchomba has faulted the government for introducing the farm produce tax even as the government said it will review the law.
Deputy President Rigathi Gachagua on Friday said the provision for the tax in the Finance Act 2023, will be reviewed to suit farmers' needs.
His remarks followed a backlash from farmers after the government sought a 5 per cent withholding tax on farm produce.
Wamuchomba said the provision is repressive to farmers.
"I repeat Finance Act, 2023, is punitive and oppressive to farmers and small businesses. This is how farmers pay five per cent of their produce sales, plus a house levy of 1.5 of total sales."
The MP said the burden is besides what farmers are expected to pay under the yet to be launched Social Health Insurance Fund (SHIF) that will replace the National Hospital Insurance Fund.
"Small traders (kiosks) who collect Sh1 million per year to pay 3 per cent of annual income tax plus 1.5 per cent for house levy plus NHIF plus SHIF plus? No!" Wamuchomba said.
The legislator said the Finance Act 2023, should be reviewed because it imposes burdens on Kenyans.
"This has to be reviewed. If Parliament cannot, ordinary people will. God with us."
In a sudden about-turn, Gachagua on Friday said the Finance Act 2023 contains some mistakes that should be reviewed.
The DP said the government will not help and at the same time oppress farmers.
"On the issue of taxes that were passed by Parliament, we have realised it has some mistakes as it seeks to levy farmers. I have talked to the President and the CS (Njuguna Ndung’u) for Treasury and we shall talk to our MPs. We can’t be helping the farmer on one side, and on the other, we are oppressing him," he said.
Gachagua spoke during the Embu Livestock, Dairy and Fisheries Exhibition at Kalro grounds in Embu town.
He urged the Embu county government to implement programmes that promote agriculture.
The DP highlighted government's efforts to implement reforms in the agricultural sector, drawing attention to successful reforms in tea, coffee, avocado and macadamia.
He said the government is steadfast in maintaining stability in prices, not only for macadamia but also for coffee, tea and avocado to shield farmers from price fluctuations.
"We recognise the concerns raised by farmers on avocado, macadamia and other products. We will conduct a comprehensive review of taxes to address the issues raised and promote a fair agricultural environment," Gachagua said.
The new tax that came into force last month will see farmers part with at least Sh5 for every Sh100 they make from their farm produce.
The move by the government is in a bid to increase revenue from the agricultural sector.