Jitters as Govt Unveils Monthly Tax Targeting Businesses

A photo of the entrance of the National Treasury offices in Nairobi taken on March 16, 2018.
A photo of the entrance of the National Treasury offices in Nairobi taken on March 16, 2018.
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National Treasury

The government through the Kenya Bureau of Standards on Tuesday, invited Kenyans to submit their views on the proposed Standards Levy Order 2023 that will see businesses pay a monthly tax.

KEBS requested stakeholders, manufacturers, professional bodies, non-state actors, and development partners to partake in the public participation exercise by giving their thoughts and feedback.

“The levy order contains provisions as to the evidence by which a person's liability to the levy or his discharge of that liability may be established, and as to the time at which any amount payable by any person by way of the levy shall become due and the way it shall be recoverable by the Director,” a statement from KEBS read in part.

According to KEBS, the Standards Levy is an amount payable monthly to KEBS by all Manufacturers. 

Photo collage of different marks of quality approved by the Kenya Bureau of Standards
Photo collage of different marks of quality approved by the Kenya Bureau of Standards.
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KEBS

The law first came into operation in 1990 and with the 2023 proposed changes, every manufacturer will be paying 0.2 per cent of turnover excluding Value Added Tax and discounts.

Obligations 

Under the Standards Levy Order 2023, every registered business venturing into manufacturing will be required to pay a minimum of Ksh1,000 per month and a maximum of Ksh400,000 per year.

The levy must be paid by the 20th day of each month succeeding that of the manufacturer.

“If you fail to pay the Levy, you are guilty of an offence under the Standards Act of the Laws of Kenya and are liable to prosecution,” KEBS warned manufacturers. 

You will be exempted from the levy If your annual turnover does not exceed Ksh200,000.

How to give feedback on the proposal

If you agree or disagree with the levy, you are requested to submit your comments to standardslevyorder@kebs.org before September 22, 2023. 

Kenyans have also been asked to attend physical meetings organised by KEBS to learn more about the levy and give their views.

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