Ugandan Traders Urge Kenyan Ports Authority to Offer Blanket Tax Waiver

September 10, 2013 2:59 pm0 comments by:

Mombasa-Ugandan businessmen have reacted, cautiously to the tax waiver, announced by Kenya Ports Authority-KPA.
The Kenya Ports Authority announced last month that it was waiving the taxes, on Ugandan goods that have overstayed at the port.
Transit cargo, destined for Uganda, has been piling up at the port city of Mombasa, as importers in Uganda, protested the decision that Kenya Revenue Authority to impose cash bonds before releasing cargos from the terminal.
But Kenyan Ports Authority last month waived off the tax and urged Ugandan traders to collect their containers from the port at no cost.
Ugandan businessmen , however say the waiver is inconsequential , and urge the Kenyan Ports Authority-KPA to do more to help than just waiving the taxes.
Ahmed Fedi the Zonal Coordinator of the Ugandan traders in the port city of Mombasa told the Continent Observer that KPA has in practice reduced the taxes by only 30%.
“The waiver committee in KPA, should be business friendly and state clearly what they can reduce or not reduce because just imagine if your 26 ft container has stayed there for five months and you are paying us$5000 per months and they are only giving you a waiver of 30% is that realistic” Fedi the Coordinator of Ugandan traders believes that the waiver will not help to decongest the port.
“Just see how congested the J section of the port is and to be sincere to you people have abandoned their goods because of the high charges” Fedi explains.
Fedi says the Ugandan traders would be happy if the Kenyan Ports Authority reduces on the warehouse charges and the shipment.
He says traders sometimes delay to pick the goods because of delay in receiving the bill of lading.
The Kenyan Ports Authority is facing challenge of overcrowding at the terminal as traders delay to clear their goods.
Uganda a land locked country gets most of its goods through the Kenyan port of Mombasa.

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