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Nairobi — Sugarcane farmers and transporters are set to benefit from a major tax shift in the proposed Finance Bill 2026, which aims to reduce transport costs within the sector.
The reforms are being hailed as a significant win for farmers, with the government moving to lower operational costs that have long eaten into profits in the sugar industry.
Under the proposed changes, selected supplies will be shifted from zero-rated Value Added Tax (VAT) status to VAT-exempt status. This includes sugarcane transport services, which will now be fully exempt from VAT.