FILE PHOTO | NMG
The Treasury has imposed an extra 2.5 percent duty on local sales from the Export Processing Zones (EPZs) amid growing suspicion of diversion into the Kenyan market.
"The Bill proposes to charge an additional duty at a rate of 2.5 percent of the customs value in respect of goods entered for home use from an export processing zones enterprises.
Audit and advisory firm KPMG Kenya said the goods will become more expensive —given all the other taxes paid for them — even though they have unfettered access to the local market as long as they account for all the duties.
Recently, the government has opened up the local market for the EPZ enterprises whose export markets have been negatively impacted by the Covid-19 pandemic.
“The additional duty will make EPZ products more expensive given that Special Economic Zones have unfettered access to local markets once they account for custom duties on products.”
