In Summary:
- Joyce Gachugi Waweru has poked holes in the proposed Eco-levy on the goods deemed to have negative effects on the environment in the Finance Bill 2024
- She termed the proposal ‘double taxation’
Packaging Producer Responsibility Organization CEO Joyce Gachugi Waweru has poked holes in the proposed Eco-levy on the goods deemed to have negative effects on the environment in the Finance Bill 2024
Ms Wareru termed the proposal ‘double taxation’ as already as an already extended producer responsibility scheme is in force to ensure sustainable waste collection and management.
She said that the proposed Eco-levy will go to the consolidated funds and may not serve its intended purpose.
“The government will double tax because right now the Extended Producer Responsibility is in force and when they again introduce Eco-levy that will not directly address its purpose since the levy will go directly into the consolidated funds, it means the cost of production will go up and the consumer will have to shoulder the costs,” she said
Goods On Taxman List
The levy will be imposed on goods that contribute to noise, soil, and air pollution
Among the products on the taxman list are mobile phones, especially smartphones. Another commonly used item set to be affected by the levy is diapers.
Microphones, loudspeakers, earphones, monitors, projectors, ATMS, calculating machines, with cash registers among them.
Rubber materials, and tires used in vehicles, motorcycles, and bicycles will also be levied.
Also included are batteries or dry cells, plastic packing bags, and mitumba clothes.
Proposed Adjustments
In the proposal, the levy will be imposed and will vary ranging from Ksh98 to Ksh1,800 per unit
Smartphones were listed under products set to have the levy charged at Ksh225 per unit. Levy for rubber tyer was proposed at Ksh1,000 per unit.
Levy for diapers will be charged at Ksh150 per kilogram. On the other hand, plastic bags will be charged at Ksh150 per kg.
“The Eco levy shall be paid to the Commissioner at the rate specified in the Fourth Schedule in the case of imported goods, by the importer at the time of entering into the country” proposed the Bill in part.
Impact
If passed, the manufacturers and imported will pay more for their products, and the price of the products will increase as business owners push down the costs to the final consumers.
Ambiguity & Double Taxation
According to the National Environment Management Authority Sustainable Waste Management Act 2022, every producer bears mandatory extended producer obligations to reduce pollution and environmental impacts of the products they introduce into the Kenyan market and waste arising therefrom.
Every producer shall fulfill their extended producer responsibility obligations individually or collectively in a compliance scheme.
