PRIVATE SECTOR CONSULTATIVE FORUM ON THE DRAFT NATIONAL POLICY TO SUPPORT ENHANCEMENT OF COUNTY GOVERNMENTS ON SOURCE REVENUE
KNCCI attended a consultative forum organized by the Kenya Private Sector Alliance(KEPSA) held at the Pride Inn Hotel on 16th September 2019. The forum engaged different stakeholders from the Private Sector on the draft National policy to support enhancement of County Governments Own Source Revenue 2019 and the County Governments (Revenue Raising Process) Bill 2018. The meeting was aimed at gathering private sector views on the draft Bill and Policy which will form part of KEPSA’s contribution to the two documents. Business issues such as charges multiple fees, levies, double taxation, cross border investments among many others were addressed
Emerging issues of the policy were also addressed like; The National government’s function in Revenue administration, Enforcement issues of the policy, the role of the county assembly in the policy, definition of the economic activities that might take place and the infusion of the planning and budgeting processes.
It was recommended that the Bill should include and focus on a number of things which include:
- A standard for the basis upon which taxes, fees and charges are imposed.
- National Classification of county taxes, fees and charges.
- National Standard for classification of economic/commercial activities for purpose of importing taxes, fees, levies and charges.
- National standard for determination of units and standards of measurements and consequently levying of taxes.
- Need for national audit of taxes, fees and charges levied by national government and county government.
- The Bill should also focus on resolving the problem of double taxation within counties.
- Mandatory consultation of key stakeholders by the county government on proposed taxes before submission to the national government.
- The Bill should focus on interpreting key constitutional principles such as Common market, National Economic Policy, National Mobility of goods, services, capital and labour.
- The Bill should focus on the need for a complementary legal framework for regulating or governing areas such as licenses, permits, entertainment, advertising, Tariff pricing policy.
It was agreed that there is a need to hold another consultative forum which will engage the private sector ,County Government and National Government.
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