The Kenya National Chamber of Commerce and Industry has appealed to the government to waive the one percent tax levied on business for three years as a way of ensuring their recovery following Covid-19 effects.
Speaking yesterday during an export promotion seminar in Nyeri, Chamber President Richard Ngatia said that unless the tax is waived, many businesses will collapse due to effects of the disease which has seen many closed down with others being forced to scale down their operations.
“As a chamber of commerce we have engaged the government in waiving this tax for at least three years thus giving many entrepreneurs a chance to recover and continue with their business.” said Ngatia.
Ngatia said recently the government announced that it would initiate a one percent tax levy on all businesses regardless if one is making profit and said that more time is needed to cushion business.
He also called on the government to formulate policies that give a conducive environment to the business community.
“We as chamber want policies that guarantee us conducive environment, we do not want situations where we are double taxed by the government.” said Ngatia.
He said that currently the chamber has been able to source markers for horticulture and floriculture in western counties through the United Arab Emirates.
“We as a Chamber of Commerce and Industry have traversed the globe through virtual meetings where we have been able to source markers but our main problem is traffic at border points that we need the government to address.” said Ngatia.
Many exporters are facing challenges due to rejection of their produce in the European markets. Ngatia urged the Ministry of agriculture to formulate a policy that will see that there is no usage of banned pesticides.
“We want to urge our government to enforce requirements of those markers by ensuring that such pesticides do not land in our country. This will end such an embarrassing moment for Kenya traders.” said Nagtia.
Nyeri governor Mutahi Kahiga who was also present called for full devolution of agriculture to counties to ensure that farmers are protected from cheap exports.
“As counties our hands are tied we cannot be able to enforce such regulations due to lack of policies. We believe it is high time that the ministry’s functions are devolved.” said Kahiga.