Security guards decry high taxation

Tuesday, December 3rd, 2019 00:00 |
PSIA chairman Cosmas Mutava.

Security guards have decried rising cost of doing business saying high levies are impacting negatively on their services.

Under the Protective Security Industry Association (PSIA) umbrella, the guards want the Kenya Private Sector Alliance (KEPSA) to lobby the government to help phase out some of the taxes that directly affect their welfare.

Despite being a labour intensive service, the guarding service providers feel the unnecessary taxes are increasing the cost of doing business in Kenya.

“Challenges facing the security guarding services are the high cost of doing the business,” PSIA chairman Cosmas Mutava said, adding that the guarding companies pay the wages and 16 per cent Value Added Tax (VAT) while waiting for the payment. 

“Some customers pay after 30, 45, 60, 90, some even after 120 days. Some still terminate the order without making payment. Despite all this the Kenya Revenue Authority (KRA) expects payment of VAT from the date the invoice is raised,” he added. 

In light of this, the guarding industry, according to Mutava, wants VAT only paid to KRA when the client has made the payment to the security company.

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