10 Small Traders Targeted by KEBS Monthly Levy Enforcement
Small businesses in Kenya are facing demands from the Kenya Bureau of Standards (Kebs) to pay a silent levy that has been in place for decades.
Kebs has written to various business owners, including those running photocopy, tailoring, and photography studios, demanding payment of the levy.
This move has the potential to further burden small businesses already reeling from the high cost of living.
The Standards Levy (Amendment) Order 1999 requires each manufacturer to pay Kebs a monthly levy.
This levy is recoverable at source at a rate of 0.2% of the ex-factory price of products manufactured in a month, excluding value-added tax and discounts.
Each manufactured product during any given month is subject to a standard levy of a maximum of Sh400,000 per annum and a minimum of Sh1,000 a month.
The tax payable must be made through the Kenya Revenue Authority (KRA) iTax system standards levy account on or before the 20th day of the succeeding month.
The Kebs notice states that a manufacturer is defined as a person or persons who produce process, treat, install, test, operate, and use.
Persons who manufacture or intend to manufacture are required to notify the Managing Director of Kebs.
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The demand for payment of the silent levy has sparked concern among small business owners who are already struggling to stay afloat amid the economic challenges brought on by the Covid-19 pandemic.
The move has been met with criticism from various quarters, with some arguing that it is unfair to impose the levy on small businesses that are struggling to survive.
Kebs has defended the move, stating that the levy is necessary to support its operations and ensure that the quality of products manufactured in the country meets the required standards.
The Bureau has also clarified that the levy is not a new tax but rather a long-standing one that has not been enforced in recent years.
In conclusion, Kebs’ demand for payment of the silent levy has the potential to further burden small businesses already struggling to survive in the current economic climate.
While the Bureau argues that the levy is necessary to support its operations and ensure product quality, critics have raised concerns about the fairness of imposing the levy on small businesses.
It remains to be seen how this issue will be resolved, and whether small businesses will be able to cope with the additional financial burden.
The Kebs list of manufacturers includes
- Tailoring
- Printing
- publishing
- screen printing
- Photocopying
- Photographic studios
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