The government should avoid heavy taxation to local manufactures so that the industrial sector can prosper.
Heavy taxes imposed on manufacturers have proved detrimental to investments in the country and there is need for the government to reduce heavy taxes to thrive industrialisation.
Pwani Oil Commercial director Rajul Malde said comparing Kenyan with East Africa countries especially neighbouring Tanzania, Kenya has been heavily taxing manufacturers, drastically increasing the cost of production.
He said for the government to attract more investors it should heed the heavy tax burden cry from manufactures which will also reduce production costs.
“Heavy taxes leads to high cost of production which also results into high prices of the final products in the market, evidently it burdens the consumer,” noted Mr. Malde.
He revealed that other East Africa countries are continuously engaging investors and manufactures in a bid to understand the dynamics of the manufacturing sector and as well employ proper ways of improving it, further urging Kenyan government to invest in such continuous engagements.
“Our taxes are 18% high compared to those of Tanzania and other East Africa counties, this also directly affects the consumer considering the current tough economic times,” he added.
Mr. Malde called for a considerate reduction of taxes especially on exports from the country too.
He said if the market is flooded with cheap products from other countries, local consumers will distance themselves from the locally produced items in the market, gradually killing the manufacturing sector.
He said Kenyans wants affordable products which could only be achieved through a considerate reduction of taxes.
He also appealed to the East Africa community governments to deliberate further on cross border tax so that products from Kenya to Tanzania, Uganda, Burundi or any other country are not heavily taxed.
He said by doing so, Kenyans will always enjoy affordable prices in the market.