Effects of tax exemption in the agriculture sector

What you need to know:

With reduction of Indirect taxes on things like extension of exemption on unprocessed edible eggs to include fertilized eggs for incubation.

Farmers are regarded as one of the winners in the 2017/18 budget.

Why?

With reduction of Indirect taxes on things like extension of exemption on unprocessed edible eggs to include fertilized eggs for incubation.

The current exemption was only applicable to unprocessed edible eggs subjecting other eggs to VAT at standard rate of 18 percent. This change brings fertilized eggs for incubation into exemption. The measure intending to promote growth of the poultry sub-sector by reducing incubation costs.

But also locally produced compounded animal feeds will not attract VAT. The measure intends to contribute to the growth of the sub-sector by reducing cost of procurement of such feeds.

Industrial poultry farmers like Kuku Poa Ltd, which specialises in processing and sale of broiler chickens for the Tanzanian market, with clients like Local restaurants, hotels with a range of star ratings, Supermarkets (including Nakumatt, Village Supermarket and Shoppers Plaza) and International fast food chains, are believed to have a lot to gain from this budget.

But what about the petroleum fee going up? How will this affect their distribution?

We had an Interview with a spokesperson from Kuku Poa and this is what he had to say;