A lorry transporting concrete stones is stopped by a county officer for collection of cess. [File, Courtesy]

All vehicles used to transport building materials in Nairobi may soon have to be registered under a Sacco or transportation firm to ensure efficient collection of cess.

The move is part of new proposals by Kenya Revenue Authority (KRA), which seek to regulate the transportation of building materials business and foster efficient revenue collection in the capital.

KRA’s Deputy Commissioner at the County Revenue Division, Annastaciah Githuba, said the proposals were arrived at following engagements with stakeholders.

The implementation of the proposals, she said, is, however, going to be determined by a February 4, 2021, consultative meeting between the taxman and stakeholders in the business.

The taxman has also proposed the scrapping of the current revenue collection method used to assess and collect revenue from the building materials transporters, which involves the erection of roadblocks along various points along the transportation routes.

“It has become apparent that there’s a need to review the procedure that is currently used to assess and collect revenue during the transportation of building materials. It is normally cumbersome, risky, and inconveniencing to transporters, county officers as well as to other road users,” said Githuba through a letter addressed to the operators.

Under the proposals, every Sacco/firm will then be required to make a monthly declaration of all the vehicles in their fleet and their corresponding tonnage. Consequently, each vehicle will be charged a monthly flat rate based on tonnage as defined in the Nairobi City County Finance Act, 2013, to cater for all the trips to be undertaken in the month.

The development comes against the backdrop of a push by the county government to increase the levies to fund the Sh37.4 billion 2020/21 budget.

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