Friday, July 1, 2022
No menu items!
HomeBusinessFuel crisis affecting productivity in other sectors of the economy

Fuel crisis affecting productivity in other sectors of the economy

The Institute of Certified Public Accountants of Kenya (ICPAK) has expressed concern that the ongoing fuel crisis in the country has continued to affect productivity in key sectors of the economy.

ICPAK Chairman George Mokua implored upon the government to urgently engage stakeholders in the petroleum sector to address the shortage and avert adverse multiplier effects in other sectors of the economy.  

“I would like to urge the government to swiftly address the current fuel shortage and put measures to avert fuel shortages in future,” he said.

Briefing the press on reflections of the fiscal budget at the Hilton Hotel Tuesday, Mokua said that according to data from the Kenya National Bureau of Statistics (KNBS), the overall year inflation rate as measured by the Consumer Price Index has risen to 5.56 percent as at March 2022 compared to 5.1 percent in February 2022.

The chairman stated that with such a rise in inflation, the Institute urges the government to continue introducing measures that cushion citizens, such as a reduced VAT rate for basic and essential commodities.

Mokua noted that while appreciating the Government’s need to mobilize domestic revenue, the proposal to amend the Tax Appeals Tribunal Act, 2013 to require a deposit of 50 percent of the disputed tax revenue in a special account at the Central Bank of Kenya before a taxpayer can appeal a decision of the Tribunal requires further discussion and stakeholder engagement.

“There is a real concern by taxpayers of the risk of abuse of this provision by the KRA and the proposal is bound to have far- reaching consequences as affected taxpayers may not have the cash flows to allow for such deposits. KRA may also raise very high assessments with a view of collecting the 50 percent where the Tribunal rules in KRA’s favour,” Mokua remarked.

The Chairman applauded the government for robust measures to tackle the pending bills problem and appealed to the two levels of government to adhere to the prescribed timeline of 30th June 2022 to settle all pending bills.

“The Institute implores upon Parliament to enact the Prompt Payment Bill, 2021 to curb future delays and ensure businesses not only survive but thrive and make their rightful contribution to the exchequer,” he said.

The Institute of Certified Public Accountants of Kenya (ICPAK) Chairman George Mokua (centre) flanked by ICPAK Chief Executive Officer

In his remarks, ICPAK Chief Executive Officer Edwin Makori stated that in spite of hiked fuel prices owing to the global supply chain challenges, the government ought to engage relevant stakeholders and prevent adverse multiplier effects.

At the same time, ICPAK Vice Chairman Philip Kakai stressed the importance of a good tax policy offering a tax system that is attractive to investment, while at the same time raising revenues to support the key pillars of a business-enabling environment such as provision of security and infrastructure.

Kakai also noted that the institute will continue to laud and commend the government supporting its measures geared toward uplifting and protecting the local industry and safeguarding livelihoods.

 

 

The Countyhttps://thecounty.co.ke
The County brings you comprehensive and unrivaled coverage of the happenings in all 47 Kenyan counties. It has not happened in mashinani if it is not on The County!
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular