Gov't to implement new taxes on imported goods that are manufactured locally
The cabinet has approved the proposal to implement new taxes on products that are imported into the country that are being manufactured locally.
Industry and Trade and Investments Cabinet Secretary Moses Kuria stated that they will start with steel, seeking to implement a tax of USD 250 per ton.
Kuria further stated that they will seek to tax furniture, paper and pharmaceuticals that are also being imported into the country.
The CS said that the importation of these goods has reduced the contribution of the manufacturing sector from nine per cent to seven per cent.
“When we see people being unemployed, unemployment being high, it is not witchcraft, it is because we stopped producing and have frustrated manufacturing,” Kuria said.
“Our manufacturing has shrug from 9% to 7% GDP. It is my objective that I have been given by the president that by 2027 I must raise that to 15% and go to 20% by the year 2030.”
He however added that EAC member states will be exempt from this tax.
“We are going to put new taxes on products that are going to be imported into the country that we have the capacity to produce. This is what is killing our manufacturing sector in the country. Cabinet has approved these levies to be subjected to these products. We will start with steel and wires rods,” he said.
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