The cost of construction in Nairobi could rise as the taxman pools building material transporters in groups for tax collection in the city. The Kenya Revenue Authority (KRA), is seeking to regulate the transportation of building materials business for efficient revenue collection.
KRA’s Deputy Commissioner at the County Revenue Division, Annastaciah Githuba reavealed the plans and said that the current procedure of cessing using road blocks erected at various locations along the transportation routes is cumbersome, risky and inconveniencing to transporters , county officers as well as other road users.
The development comes against the backdrop of a push by the county government to increase the levies to fund the Sh37.4billion 2020/21 budget. As part of the new plan, all vehicles used to transport building materials will also need to be registered under a Sacco or with a transportation firm.
Monthly declaration
The Saccos or firms will then be required to make a monthly declaration of all the vehicles in their fleet and their corresponding tonnage. 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 trips to be undertaken in the month.
Upon payment, the organisation will be issued with stickers for all its vehicles with compliance monitoring and enforcement to be undertaken through Sacco or firm’s compliance reports. Annastaciah Githuba, said the implementation of the proposals, however, is going to be determined by February 4, 2021, consultative meeting between the taxman and stakeholders in the business.
The country’s construction sector recorded a 16.2% growth in the third quarter of 2020, compared to 6.6% growth in the corresponding quarter of 2019, amid the impact of the coronavirus pandemic.
