The business community has added its voice to calls for a lower value-added tax (VAT) rate even as Kenyans waits to see whether President Uhuru Kenyatta will grant another two-year exemption on oil products.
The Kenya National Chamber of Commerce and Industry chairman Kiprono Kittony says a VAT rate below the standard 16 per cent will help grow and retain foreign investors.
“The government should reduce the number and percentages of VATs on goods within the country to attract external investors, to improve competitiveness for businesses and to lower the cost of goods for people,” he said in a statement on Friday.
Kenya’s VAT rate is lower than Tanzania, Uganda and Rwanda, which charge 18 per cent levy on goods in their territories.
The East African Community states do not, however, charge VAT on exports to boost foreign exchange reserves.