KAM Proposal: Ringfencing VAT Refunds for Kenyan Manufacturers for Improved Cash Flow

• Kenyan manufacturers propose ring-fencing VAT refunds to improve efficiency and cash flow
• KAM suggests creating a fund under the Public Finance Management Act for direct payment of VAT refunds to companies
• Current VAT refund process involves delays and impacts manufacturers relying on imported raw materials
• KAM also proposes lower VAT rate for manufactured goods, VAT exemption for plant and machinery, and removal of taxes on industrial inputs
• Suggestions to enhance competitiveness include offsetting mechanism for duties and levies on industrial inputs and specific dates for tax remittance

Source: pd.co.ke

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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