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EABC wants tax waiver for businesses over Kenyan poll chaos losses
2008-03-27 09:06:03
By Kasembeli Albert
The East African Business Council (EABC) has urged member countries to give tax waivers to the business community over losses during Kenya`s post-election violence.
Executive Director Charles Mbogori said during the crises, EABC member states - Kenya, Tanzania, Uganda, Rwanda and Burundi - which rely on Mombasa port and Kenya`s transport network for their exports and imports, were adversely affected.
He said EABC member countries were mainly affected in transportation of finished goods, raw materials and labour movement to and from all the countries, resulting into losses of revenue.
``There was a huge loss of revenue to governments and private sector. All sectors - manufacturing, imports, exports, tourism among others were hit,`` Mbogori said in a statement.
As a short-term measure, he said EABC has recommended to member countries to waive VAT or other internal taxes to businesses that were affected.
In addition, Mbogori said Kenya Ports Authority (KPA) and shipping lines should waive customs rent, demurrage charges besides unclogging outgoing and incoming cargos of the affected firms.
``Businesses need tax relief on some essential imports and commodities that have made their operations idle and unproductive,`` he said.
He reckons that there is need to develop other reliable ports on the Indian Ocean, like - Tanga and Dar-es Salaam - as well as developing Lamu port as an alternative to Mombasa in case such a political calamity occurs.
``We need to improve road and railway network. Air transport must be made cheaper and affordable even to small business,`` he said.
He appealed for conducive working relationship between PNU and ODM to commit themselves to the peace accord.
The accord, he said, should ensure there is no recurrence of violence.
He said the private sector in the region requires peace and stability to formulate policies and strategies, which will develop a vibrant regional market and infrastructure to attract international investors.
The orgy of violence following Kenya`s disputed December 27, presidential election led to more than 1,000 deaths and displacement of over 350,000 people, most of whom are still in camps.
The pinch on the economy also spilled over to Uganda, Tanzania, Rwanda and Burundi.
Essential products were not forthcoming as fuel passing through Kenya was unavailable due to closure of roads.
Kenya\'s economy had grown steadily in the past five years with all indicators pointing out that if the trend were sustained, growth would hit 10 per cent.
The economic recovery that started in 2003 achieved some major milestones and laid down solid foundation for growth.
Although the growth fundamentals laid down had reversed years of economic slowdown, the violence that rocked most parts of the country adversely affected the tempo of economic recovery.
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