By Patrick Beja
Services rendered to ships at the Mombasa port will now attract Value Added Tax (VAT).
The standard 16 per cent VAT is based on the Finance Bill 2009.
Ship agents in Mombasa are consulting on the new development as the levy communicated to them by Kenya Ports Authority (KPA) Managing Director James Mulewa last Thursday comes into force.
Said Mr Mulewa:"This is not a revision of the (KPA )tariff but an implementation of a Government levy."
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Apart from the KPA tariffs, shipping lines will now pay VAT on stevedoring, pilotage, light, harbour, tug and mooring services rendered to ships.
Mr Mulewa wrote to the Kenya Ships Agents Association on June 25 this year, to communicate the new charges.
Shipping services
A ship agent Mr Silvester Kututa confirmed the new charges and said the issue remained contentious.
"They intend to raise VAT supplementary bills for all shipments as from June 12.The issue remains contentious," said Mr Kututa, managing director of the Express Shipping East Africa Logistics.
He said the matter has been taken up through the KSAA for further discussion with KPA and Ministry of Finance. The new development means that all ship agents will pay VAT on shipping services rendered by KPA.
