Clearing and forwarding agents protest over new tax system

Clearing and forwarding agents at the port of Mombasa are lamenting over loss of business due to the implementation of a new cargo clearance and tax collection system.

They said the government promised to train them on the use of the Single Customs Territory (SCT) and even issue them with passwords for access but only 140 out of 1,000 agents have been trained.

Kenya Revenue Authority uses Simba online system for clearance of cargo while Uganda uses Asycuda, the system that is in use by SCT where taxes due for East Africa Community member states are collected in Mombasa.

“We are unable to access the system where motor vehicles and steel have been included for clearance,” one of the agents Mr William Ojonyo, said Monday.

MULTINATIONALS BENEFITING

“Two weeks ago the community implemented another phase where motor vehicles and steel were included for clearance, but we cannot access the system and only the large multinational companies are doing this business because they have regional offices,” said taskforce chairman William Ojonyo.

In the current situation, the big companies are in business at the expense of the small ones which employ most Kenyans, he said.

Mr Ojonyo spoke when the taskforce held talks with the Kenya Maritime Authority (KMA) and appealed to the industry regulator to intervene.

KMA chairman Mwalimu Digore said the authority would soon hold a meeting between the agencies involved with the view of mediating the stalemate.

“As a regulator, we will also ensure that no law is broken in the process of implementing the SCT.

“I therefore wish to implore clearing agents to go slow on the confrontation and engage with all relevant authorities. Business should be possible whether in Uganda or Kenya,” he said.

Ms Grace Wandera, who is in charge of communications at KRA, said the issues would be addressed by relevant agencies in collaboration with Uganda Revenue Authority (URA).