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COTU faults govt for failing to curb tax exasion

19 September 2013, 15:37

Kisumu - The Central Organisation of Trade Unions (COTU) accused the government of failing on its mandate to arrest tax evaders in the lucrative manufacturing industry.

“We have a wonderful manufacturing sector in the industrial area in Nairobi. They manufacture everything that one can get in the city. They made up to KES 1.483 trillion, not billion, between June 2011 and June 2012, but evaded to pay taxes worth KES 250 million to the government,” COTU Secretary General, Francis Atwoli, said in Kisumu during the launching of Trade Unionism for Social Justice in East Africa training.

The claim comes a day after President Uhuru Kenyatta warned businesses against imposing the Value Added Tax (VAT) on basic commodities.
The VAT tax has resulted in a sharp increase in the prices of some commodities much to the outcry of Kenyans at large.

The main opposition Coalition for Reforms and Democracy (CORD) has vowed to push a motion in the house with a bid to scrap off the tax.

Despite listing the commodities to which the VAT tax applies, some traders have ignored the list, hiking prices of basic commodities contrary to the law.

- CAJ News


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