Relief for Mitumba Traders as Tax Cut is Implemented | pesatalk.com

Image sourced from: fashionprojects.org

Mitumba traders?demonstration outside the treasury yesterday seems to have had the desired effect, as directive to reduce import duty on second hand clothes will take effect immediately and be backdated from June 25. What this means is goods imported on 25^th June 2012 going forward will enjoy the new tax rates.

This latest national budget had lowered duty on imported second hand clothes to KES 1.1 million on a 20 foot container from KES 1.9 million. This was aimed at creating jobs for the youth who had initially been forced to close their businesses after duty on second hand clothes increased to KES 1.9 million plus encourage importation of second hard clothes.

Mitumba demonstrators wanted to know why it was taking too long to implement the duty reduction directive considering the fact that the directive to increase duty on second hand clothes took effect almost immediately.

Finance Minister Njeru Githae said he had directed KRA to revert to the lower charge per container of imported second hand clothes.

As posted in the Standard, Kenya Revenue Authority (KRA) Commissioner General John Njiraini said, ?Goods that were imported on June 25 going forward will enjoy the new tax rates? Any trader importing second hand clothes will now enjoy the new tax rates? The directive to lower taxes was from the government and as a commission ours is to implement the directive.?

Reduction of duty on second hand clothes has in the recent past?received?sharp criticism from various stake holders as Kenya Footwear Manufacturers Association expressed dissatisfaction with the move. The association?s secretary Simon Ng?ang?a said the reduction of imported duty is greatly affecting their business. He claimed that the sector has become a major employer with 100,000 direct jobs across the value chain and another 80,000 indirect jobs in the supply of accessories and services both in the formal and informal sectors.

Source: http://pesatalk.com/2012/07/relief-for-mitumba-traders-as-tax-cut-is-implemented/?utm_source=rss&utm_medium=rss&utm_campaign=relief-for-mitumba-traders-as-tax-cut-is-implemented

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