Johnson Weru who was nominated by President Uhuru Kenyatta to become Trade PS on Thursday said he was ready to relook into the turnover tax if appointed to the job.
Weru told MPs he will be willing to engage stakeholders to find a middle ground on the unpopular tax targeting small scale traders.
He was speaking during vetting by the National Assembly’s Trade Committee.
Weru said the review should involve a balancing act to ensure no sector is hurt.
The Kenya Revenue Authority last year announced the implementation of a three percent turnover tax on small businesses. It took effect on January 1.
Under the new tax regime also christened patriotism tax, small scale traders are required to remit three percent of monthly sales to KRA.
“The best I can do is to engage. It is possible the turnover tax can hurt small scale traders,” Weru said.
He added, "There is need to bridge the fiscal gap and cushion traders from hurtful effects of this tax.”
The tax applies to anyone who runs a kiosk, a grocery store, salon or any other small business and is targeted to put into tax bracket over 2.5 million businesses in the informal sector.
MPs put Weru to task on why he had no clearance from the Ethics and Anti-Corruption Commission which is a mandatory requirement before one assumes a public office.
EACC told Parliament it had no records for Weru's self-declaration form.
Weru told Kieni MP Kanini Kega-led panel that he had filed the self-declaration form on February 14 with Huduma Centers as was advised by the anti-graft body.
“EACC advised that I fill the form, have it signed by a lawyer and the file it at Huduma Center which I did,” Weru said.
But EACC in letter dated February 19 and addressed to the committee said it had not received the form and thus the nominee is not qualified for clearance.
“The commission requests that you submit self-declaration forms submitted by the candidate pursuant to Section 12A of the Leadership and Integrity Act 2012 to enable us finalise the process,” CEO John Lolkoloi said in a letter.
The committee will on Friday retreat to Mombasa to compile its report for final tabling before the House.
Edited by peter obuya
