Private sector wants biannual tax review to ease burden

The private sector is calling on the government to consider reviewing taxes after two years as opposed to the annual increment to help them plan better their operations and reduce price fluctuations.

According to Kenya Private Sector Alliance (KEPSA), frequent price changes have seen imports outsell Kenyan products in the local market.

Last year, the manufacturing sector was one of the key economic drivers registering a 15.9% growth.

However, the private sector says the proposal by the National Treasury to introduce a 10% exercise duty on raw materials could push some businesses out of operations due to the high cost of production.

During a stakeholders forum on the Finance Bill 2022, private businesses believe the policy environment in Kenya remains unpredictable for investors to make long term decisions.

They are calling on the government to consider revising taxes after a longer period to enable them adequately plan for their operations and pricing.

They argue that the increase in taxes is making Kenyan products uncompetitive when compared to imports both locally and in the international market.

KEPSA is also calling for a review of a proposal to have businesses appealing tax decisions be required to deposit 50% of the total disputed amount at the central bank, noting that the move will deny businesses the much needed working capital.