Manufacturers have called for tax cuts to ensure a level-playing ground with companies in other East African countries.
Pwani Oil Products yesterday said the cost of production is higher in Kenya than
in Tanzania, Uganda and Rwanda. Commercial director Rajul Malde said they are charged two per cent on the raw product they import.
“Our counterparts are not forced to pay this,” Malde (below)
said.
Firms pay a 30 per cent tax for importing plastic bags. The National Environment Management Authority banned plastic bags in August 2017 but allowed manufactures of consumer products to use them for primary industrial packaging. Malde said other EAC countries do not impose huge taxes on plastics.
“If the government removes these taxes, the cost of products will go down significantly. Currently, consumers have to pay more because of these charges,” he said, adding that Kenyan manufacturers also find it difficult to export their products because of the 25 per cent duty.