Kenya: Alego MP Seeks to Amend Excise Duty On Fish Imports to Protect the Industry

Nairobi — Alego Usonga Constituency Member of Parliament Samuel Atandi intends to introduce a Bill on the amendment of excise duty on imported fish at the rate of 20 per cent of the customs value.

The MP voiced this Bill, Friday, through a legislative proposal addressed to the speaker of the National assembly Moses Wetangula where he was requesting assistance on the Bill preparation.

Atandi said the excise duty will protect the local fish industry from the cheap China fish imports by ensuring they remain employed, and the vertical equity of the tax system improves.

"Fish imports from China are cheaper than locally produced fish. This importation of cheap fish is adversely affecting the local industry and may lead to loss of employment in the fish industry," he said.

"The proposal seeks to amend the first schedule of the Excise Duty Act, 2015 in order to introduce excise duty on imported fish at the rate of 20 per cent of the custom value. This will help to protect the local fish industry from cheap imported fish. It will also generate revenue at relatively low administrative and compliance costs and improve the vertical equity of the tax system."

Atandi pointed out that Kenya has the potential to grow fish through marine and freshwater aquaculture and if protected, the fish industry may expand to meet local demand and compete internationally making the country a fish exporter.

Furthermore, Atandi stated that the Bill concerns county governments and will not delegate any legislative powers nor contain any provision limiting any fundamental right or freedom.

He also said the Bill may occasion additional public funds.

Pursuant to Standing Order 114(1), Under Section 5 of the Excise Duty Act, excise duty is charged in Kenya on excisable goods manufactured in Kenya by a licensed manufacturer, excisable services supplied in Kenya by a licensed person or excisable goods imported into Kenya.

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