Produce cess to decrease- 2017/18 budget speech

According to the budget speech by the minister for finance, produce cess will decrease from 5% to 3% for cash crops and from 5% to 2% for food crops. On top, produce cess will not be applied on the transportation of crops of less than one tonne from one Local
Government Authority to another.

Highlights show that the country’s economy grew by 6.6%i n 2016 from a growth of 7% in 2015. Given the implementation of various fiscal policies, the economy is projected to expand by 6.8% in 2017. The inflation in March 2017 was at 6.4% compared to 5.4% in March 2016. The rise in headline inflation
has been driven by increase in prices of food items. Lending to the private sector represented annual growth of 3.7% against 23.6% recorded to March 2016.

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