Import duty for steel, iron products increase to 35pc

Written By: Caroline Njenga
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Importers of steel and iron products will pay an import duty of 35 percent from 25 percent in what is aimed at protecting the local industries from unfair competition with imported products.

Manufactures will subsequently enjoy a reduced cost of power by up to 30 percent among measures National Treasury Henry Rotich hopes will spur growth and enhance job creation.

This is aimed at expanding the manufacturing sector output to 15% of GDP in five years from 8.4%, Rotich has taken a protective approach aimed at ensuring locally made products are competitive.

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Post-harvest losses as result of insufficient storage facilities will also an expansion of equipment used in construction exempted from Value Added TAX.

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Unfair competition in the textile sub-sector through importation of footwear and second hand clothes has led to an increase in import duty of 5 dollars per unit or 35% whichever is higher.

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Rotich has also extended the foreign tax amnesty by one year, beginning 30th June, 2018.

Similarly, importers of paper products will pay an import duty of 35% from 25% in order to protect locally made paper products.

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Timber and furniture is also one of the biggest winners as a rate of duty of USD 110 per metric ton has been slapped on particle board importers.

Vegetable oil importers will also pay a duty of USD 500per metric tons or 35% whichever is higher.

Manufacturers of animal feeds will also benefit from a VAT exempt on raw materials used in the process.

 

 

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