Leaders put regional taxmen on notice over movement of goods

Regional leaders put taxmen on notice for hindering smooth movement of goods saying their acts border on criminal activities.

The 8th Northern Corridor Integration Projects Summit hosted by President Uhuru Kenyatta and attended by Presidents Yoweri Museveni of Uganda and Paul Kagame of Rwanda resolved that revenue authorities from Kenya, Uganda and Rwanda ensure that no clearing and forwarding agency is denied business at the port of Mombasa due to bureaucracy.

The meeting was held at the Safari Park Hotel on Thursday. President Kenyatta said the aim of the integration process was to create prosperity and no one should sabotage the efforts that have gone into the progress made so far.

“It is not right for people to lose business because of the integration process when the whole aim is to increase prosperity,” he told the revenue bosses.

President Museveni was categorical; “It is a crime to delay a business even for one day. I will not tolerate anyone who undermines integration.”

RESOLVING BUREAUCRACY
The view was supported by Mr Kagame who spoke strongly against the removal of clearing and forwarding agents in Mombasa.

The directive, seen mostly directed at Kenya Revenue Authority boss John Njiraini, is to resolve “a bureaucratic glitch that has seen almost 1,800 clearing and forwarding agents locked out from using systems used by Uganda and Rwanda to clear goods at the port of Mombasa.”

The summit was also attended by representatives from Southern Sudan, Tanzania, Burundi and Ethiopia, which sent a special envoy.

The meeting directed the revenue authorities to ensure that by the end of January the anomaly is rectified.

“When we meet in two months in Kigali for the next summit we want you to report back and tell us all clearing agents are able to do business using all the systems,” President Kenyatta said.

To appease regional neighbours, Kenya gave a full waiver of customs and warehouse rent with President Kenyatta directing that demurrage charges also be removed to facilitate quick clearance.

PROJECTS MAKING PROGRESS
Agents will be required to remove such goods “within 60 days from date of publication of notice in the East African newspaper.”

Uganda and Rwanda revenue authorities have, under the integration process, opened stations at the port of Mombasa to ease the process of clearing goods at points of entry to ensure smooth movement of cargo within the region.

At the same time, the summit announced that Uganda and Southern Sudan will by January next year join the one area network, which Kenya and Rwanda have already established.

President Kenyatta said initial doubts about loss of taxes under the one area network have been cleared after the realisation that reduced taxes on calls leads to more volume hence increased revenue for participating countries.

The summit was also told that customs issues concerning sugar imports from Uganda to Kenya have been resolved.

Attendants heard that the implementation of the northern corridor integration projects including the standard gauge railway and free movement of labour were making progress.