By George Munene
The national and county governments have agreed to eliminate double taxation—multiple levies and fees charged on goods transported across counties. This will prove a boon for farmers and fresh produce traders who can now more easily and cheaply move goods past county borders.
“We will be working on a framework that ensures goods are only taxed once at their county of origin. If you are a farmer or trader ferrying fresh food from Nyandarua you will no longer be taxed in Nairobi, Taita Taveta, etc, as you take your produce to markets in Mombasa,” said Interior Cabinet Secretary Fred Matiang’i at a presser held on the heels of the meeting on Wednesday.
In the consultative forum between the Council of Governors (CoG) and the National Development, Implementation, and Communication Committee (NDICCC), it was determined that the ministry of Industrialization, Trade, and Enterprise will now develop an agreement on the same for ratification by the country’s 47 counties.
This marks the first time since devolution started that counties have agreed to abolish double taxation even as traders have perennially complained that the duplication of levies has made private sector trading across county borders unnecessarily expensive.
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Embu Governor Martin Wambora who also chairs the CoG pointed out that requiring a single permit will be ideal for commerce as businesses will more freely transport goods across counties.
“The move will benefit our farmers who have had to endure double taxation. It will also spur private investments in the counties,” he said.