Manufacturers in Kenya meet IMF boss Selim Cakir over Finance Bill 2024

The Kenya Association of Manufacturers (KAM) on Tuesday, June 11, 2024, met the International Monetary Fund (IMF) Kenya Resident Representative Selim Cakir over contentious clauses in the Finance Bill 2024.

This follows the introduction of several levies targeting manufacturers of 18 products including plastic packaging, car batteries, diapers and sanitary towels and rubber tyres.

“KAM has today engaged IMF Kenya Resident Representative, Selim Cakir, on the impacts of the Finance Bill, 2024. The Bill seeks to amend laws relating to various taxes and duties,” KAM stated.

“Additionally, it introduces various amendments including the Eco Levy, which is a new environment tax targeting manufacturers and importers of selected 18 products. This levy will affect various products including plastic packaging, car batteries, diapers & sanitary towels and rubber tyres.”

Manufacturers targeted

According to the manufacturers, some of the changes that the Finance Bill 2024 proposes, will have far-reaching impacts on the manufacturing sector, and to a larger extent, the local mwananchi.

“Under the Excise Duty Act, the government has proposed to remove the provision allowing manufacturers to offset the costs of their raw materials subject to excise. Whereas we recognize the government’s need to raise revenue, it is imperative that it reconsiders some of the changes that the Finance Bill 2024 proposes, which will have far-reaching impacts on the manufacturing sector, and to a larger extent, the local mwananchi,” KAM added.

The Eco Levy targets products that are deemed to have a negative impact on the environment, including various technological and telecommunication products.

Dociled in Section 7B of the Finance Bill, if passed, the law will see television camera tubes taxed at Ksh1,800 per piece, rubber tyres at Ksh1,000 each, smartphones at Ksh225 per piece, Ksh15 per kilogram and plastic materials at Ksh150 per kilogram.

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