Finance Bill 2023:KAM expresses concern over Export Development,Investment Levy

The Kenya Association of Manufacturers (KAM) has opposed the Export Development and Investment Levy in the Finance Bill 2023.

The National Assembly published the Finance Bill,2023 on 28th April 2023 seeking to amend laws relating to various taxes and duties while proposing new taxes ,regulatations and incentives.Kenya Association of Manufacturers(KAM)engaged its members on the Bill and thereafter presented to National Assembly’s Department Committe on Finance and National Planning.

In its statement  from KAM Chairman Rajan Shah,The Association states’‘KAM is opposed to the imposition of a levy aimed at promoting and safeguarding local industries from imported finished goods originating from East Africa Community’s Custom Union and current or future Free Trade Areas(FTA’s).KAM has been advocating for policy and fiscal interventions to promote local manufacturing.”

The Association is deeply concerned on the issue and asking the lawmakers to reconsider as 10% EDPL(Export Development and Promotion Levy) on imports should spare raw materials and intermediate products and instead charge it on finishewd products.However KAM is urging its commitments to working with the Government on icreasing the manufacturing sector’s contribution to the GDP.

Under the current EAC CET review,the EAC partner states adopted a 4-band structure (0%-raw material;10%-intermediate raw materials(products not available in the region);and 35%-finished products ).Clinker,wire and billets attract 10,25 and 0 percent respectively in the just approved EAC CET.In addition the Association says the 10 percent levy on imported raw materials and intermediate products will render Kenyan products uncompetitive compared to EAC Partner States and within the African Continental Free Trade Area(AfCTA)which will have an impact on trade flows with regional partners,Said KAM.