KRA mulls new cess collection plan for Nairobi County
REVENUE: Kenya Revenue Authority (KRA) wants to regulate collection of cess for transporters of building materials within Nairobi County, through Savings and Credit Cooperative societies (Saccos) or transportation firms.
In a proposal due for discussion with stakeholders on Thursday, the tax agency expects the review to streamline current procedures, by adopting a more structured approach to collection and assessment of the cess.
“The current procedure of cess collection using roadblocks erected at various locations along the transportation routes is normally cumbersome, risky and inconveniencing to transporters, County Officers as well as to other road users,” said Annastaciah Githuba, KRA’s deputy commissioner for County Revenue Division.
In the proposal, every Sacco or transportation firm will make a monthly declaration of all the vehicles in their fleet and their corresponding tonnage.
Githuba said each vehicle will be charged a monthly flat rate, based on tonnage as defined in the Nairobi City County finance Act 2013, to cater for all the tips to be undertaken in the month.
Upon payment, the organisation will be issued with stickers for all its vehicles, with the Sacco or transportation firm monitoring and enforcing the new regulation, if adopted.
It will also boost county revenues, considering the county government has been pushing for an increase of the levies to fund a Sh37.4 billion budget for the 2020/21 budget.
The County Finance Act requires that owners of lorries that weigh three tonnes and above to pay Sh12,000 per annum, while those with lorries for higher pay Sh24,000 per annum.