KRA Meets Kenya Association of Manufacturers Members to Discuss Collaboration on Exports and Imports Facilitation

Kenya Revenue Authority (KRA) met Kenya Association of Manufacturers (KAM) members to discuss issues on the enhancement and collaboration on exports and imports facilitation.

KAM had convened the meeting to discuss taxation particularly on imports and exports, noting that taxation is an area that needs reviewing in order to enhance competitiveness and build the economy.

KAM CEO, Phyllis Wakiaga said that manufacturers would better their business if the revenue collection body would consider reviewing a variety of taxation policies that would make it easier and more convenient for them.

“Taxation is increasingly becoming a challenge to manufacturers and thus the need to address it. Better taxation policies will allow both sides to meet their objectives including increasing manufacturing competitiveness, government revenue and job creation,” said Ms. Wakiaga.

The major export issues brought forward by KAM included: VAT refunds, unfair treatment of Kenyan exporters by partner states and VAT levies on raw materials and non finished product; whereas those in regard to Imports were, misclassification of products to avoid duties, intelligence collaboration, and also dumping, counterfeits and illicit trade.

KRA Deputy Commissioner Department of Strategy, Innovation and Risk Management, Joseline Ogai noted that manufacturers should not hold information that could lead to better trading for them.

“We need you to give us your intelligence information, so that we may be able to capture traders engaging in illicit or counterfeit trading. Our department will protect the source, and we will work swiftly to ensure that we stop illegal trading. Let us not wait until the counterfeit products are in the market to start reporting,” said Mr Ogai.

KRA expressed their interest in making trading easier for manufacturers and were keen to implement the suggested changes. The changes suggested were: to create Import Export (EXIM) rapid results programme, inter-agency collaboration on policy and administration, sharing and acting on intelligence, enhanced border controls to curb surge in counterfeit and illicit trade and undertaking regular market and economic intelligence surveys to eliminate contraband, substandard and illicit products in the market.

The KAM team will have another meeting with KRA at the end of January 2017, to review the progress made on in the implementation of the policy changes to favour trading by manufacturers.

Related: Optimism Among Kenyan Manufacturers High