Counties urged to harmonise taxes for for growth

COUNTIES should harmonise taxes to promote intra-county trade and attract investments, the Kenya National Chamber of Commerce and Industry has said.

KNCCI
chairman Kiprono Kittony yesterday said high and uncordinated taxes and levies are unfavorable
for businesses, a move that has kept trade low between counties.

He said the business community and members of public must be involved in
the formulation of budgets and taxes in counties, to ensure their
views are captured.

Addressing
the national meeting for county budget and economic forums in Nairobi, Kittony accused
“some governors” for refusing to work with the business community, “simply
because they were not supported during elections”.

“The
business community must participate in determining priorities as far as
competitive advantage is concerned. Devolution has come at the right time and provided
a lot of opportunities that we need to tap,” Kittony said.

He
said the chamber, which has a presence in all the 47 counties, is ready to
support counties in public participation.

Kittony
was speaking in support of manufactures in the country, who have accused counties
of numerous
levies amounting to double taxation.

According to the Kenya Association of Manufactures, counties have created non-tariff barriers,
which have curtailed free movement of goods in the country.
This includes levies on advertisement and multiple business permits.

Some counties have even
barred manufactures from branding their vehicles, a move that is hindering inter-county trade and holding back industrial growth, KAM chief executive Phyllis Wakiaga told the Star in an interview.

According to Wakiaga, revenue
raising measures by the county governments should not hinder inter-county trade
or the national economic policy.

“We are ready to work with county
governments to ensure that we streamline these,” she said.
said.