The Kenya Association of Manufacturers (KAM) has strongly opposed proposed additional taxes on businesses. KAM argues that instead of imposing new taxes, lawmakers should focus on addressing rampant corruption. Reports indicate that corruption costs the country Ksh3 billion every day.
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KAM’s position comes amid ongoing discussions about fiscal policies aimed at increasing government revenue. The association emphasizes that raising taxes could stifle growth within local industries. Many manufacturers are already grappling with high operational costs due to inflation and other economic pressures.
In a recent statement, KAM highlighted the need to tackle corruption first before considering new taxes. “We lose Ksh3 billion every day due to corruption,” said Phyllis Wakiaga, CEO of KAM. She emphasized that closing these loopholes would eliminate the need for additional taxes.KAM’s call for action resonates with many Kenyans frustrated by persistent corruption scandals.
These scandals affect various sectors, including public procurement and healthcare. The association believes that effective governance is essential for economic growth.KAM also argues that increasing taxes will burden businesses struggling under current economic conditions. They stress the importance of creating an enabling environment for manufacturing growth.
This includes reducing bureaucracy and improving access to finance.As discussions continue regarding proposed tax measures, KAM remains firm against additional taxation without addressing corruption first. They believe strong governance can lead to better economic outcomes for all Kenyans.The association has called on lawmakers to prioritize anti-corruption measures over new tax proposals.
They argue that this approach will lead to a more sustainable economic environment. By addressing corruption, the government can recover lost revenue and support local industries.KAM also urges MPs to consider the long-term impact of increased taxation on businesses. Higher taxes could lead to job losses and reduced competitiveness in the region.
This would ultimately harm the economy and hinder growth prospects for local manufacturers.In conclusion, KAM rejects additional taxes and urges MPs instead to focus efforts on closing corruption loopholes costing Kenya Ksh3 billion daily.
The association advocates for effective governance measures needed to enhance economic growth and reduce financial losses due to corruption.
