× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

Miller loses bid to avert double taxation by counties

By Evelyn Kwamboka | April 27th 2020

Manufacturing companies with inter-county operations have been dealt a major blow after the High Court dismissed a case challenging multiple-taxation by county governments.

Kisumu-based United Millers Company Ltd had challenged the decision by 46 county governments to charge it for various licences to deliver goods within their respective jurisdictions.

The duplicated trade licences demanded by the devolved units include single business permits and levies for distribution and branding of vehicles used to ferry the goods.

High Court judge Fred Ochieng', when dismissing the application, said while the company’s complaint was genuine, there was nothing unconstitutional about the different Finance Acts passed by the various counties.

“It does appear to me that the petitioner might have a legitimate complaint about multiplicity of distribution fees. It probably makes the cost of products more expensive to the ultimate consumers, especially if such a consumer buys the product at a county that is far-off from the county where the product is manufactured or produced,” said the judge in the judgment delivered on April 25.

He said the current confusion could have informed a new draft policy that suggests county taxes, fees and charges should either be levied at source or at destination.

“County taxes, fees and charges should be levied at the source or destination of transportation of goods in question (including within the same county),” reads part of the draft National Policy to Support the Enhancement of County Governments’ Own-Sourced Revenue.

In its response, the Narok County Government told the court it only levied cess on the agricultural products such as wheat and maize that the miller sourced from the ground. 

Share this story
Boeing restarting commercial airplane production next week
Boeing said it will resume commercial airplane production next week in Washington state after suspending operations last month
Survey: Why 40 pc of workers want to quit their jobs
More than half of 18 to 25 year-olds in the workforce are considering quitting their job. And they are not the only ones.