Eric Orina
5 July 2002
The government on Wednesday all but reinstated export promotion programmes scrapped in this year's Budget.
It allowed duty-free importation of goods under the Export Promotion Programmes Office and Essential Goods Production Support Programme, but only after adherence to tough new rules introduced to curtail flagrant abuse by unscrupulous traders.
Manufacturers and other importers who want to benefit from the programme will have to argue their case before Treasury officials before being allowed remission of duty and Value Added Tax, the Kenya Revenue Authority Commissioner-General, Mr John Munge, said.
"Previous users of the EPPO and EGPSP facilities who wish to continue importing such goods on a duty-free basis will in future be permitted to do so only after gazettement of such user and the permitted quantity of such goods," Mr Munge said.
He said in a statement that approvals under the EPPO and EGPSP facilities granted prior to June 13 were valid and would be used to clear the subject goods from the port.
"All applications for remission of duty and VAT received in the EPPO on or before June 13 would be processed in the same manner as though the EPPO and EGPSP facilities are still operational," he added.
Goods imported under the programme must be accounted for within nine months from the date of importation.
Mr Munge said a joint team from Treasury and KRA would vet applications.
"We will ensure transparency in our dealings by gazetting what will be approved," he said.
"Manufacturers must also self-regulate by telling us who is being unscrupulous," he added.
Manufacturers, fresh produce exporters, flower exporters, text book publishers and other stakeholders criticised the scrapping of the programme by Finance Minister Chris Obure in his Budget Speech last month.
Mr Munge, however, said the two programmes had been abused, denying the Exchequer billions of shillings in revenue.
"At the same time, we must level the playing field for bona fide manufacturers who are facing cut-throat competition within Comesa," Mr Munge said.
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