In a statement, the major players in the business and
manufacturing sector revealed that resolutions were reached following a meeting
at the State House on June 12, 2024, with key strides made on Eco Levy and the
Motor Vehicle Tax.
For starters, KEPSA revealed that the government agreed to
their proposal on the exemption of some locally assembled vehicles from the
imposition of Excise Duty,
As detailed by the private sector, specialised vehicles used
in the tourism industry such as Landcruisers will be exempt from the tax.
This move is aimed at boosting the tourism sector which is
one of the top sectors that support the economy.
On the other hand, the Motor Vehicle Tax for commercial and
agricultural vehicles will be reviewed. Initially, the business players wanted
the two categories of vehicles exempted from the tax.
The group acknowledged that the tax would increase the cost
of doing business.
However, after the deliberations, it was agreed that the
government would develop clusters for the two vehicles.
Further, the business community raised concerns over the
imposition of 25 per cent Excise Duty on crude palm oil and finished cooking
oil.
While the government maintained that the move was aimed at
enhancing local production, the meeting resolved to review the taxation
proposals based on a verification exercise that will be undertaken in due
course.
On the other hand, the meeting also resolved
to restrict the Eco Levy to imported products.
Notably, other tax concerns will be discussed with various
government institutions on a way forward.
The Kenyan DAILY POST
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