Kenya, Dar row brews over 5pc cargo tax

A goods truck crosses into Tanzania from Kenya at the Namanga border. FILE PHOTO | NMG

By STANLEY NGOTHO
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Summary

• Kenyan truckers have been driven over the edge by a new Tanzanian law subjecting their lorries passing through Namanga border post to five percent per tonne tax. It will be charged on trucks entering Kenya.
• Kenya International Freight & Warehousing Association Chairman Daniel Wainaina said the move is oppressive and discriminatory to Kenyan transporters.
• The association has presented their concerns to Tanzania authorities.

Kenyan truckers have been driven over the edge by a new Tanzanian law subjecting their lorries passing through Namanga border post to five percent per tonne tax. It will be charged on trucks entering Kenya.

Kenya International Freight & Warehousing Association Chairman Daniel Wainaina said the move is oppressive and discriminatory to Kenyan transporters.

The association has presented their concerns to Tanzania authorities.

“Introduction of the domestic tax on trucks is not in the spirit of the East Africa free trade. This is an unfair trade barrier meant to kick out Kenyan vehicles from Tanzania transport industry. Let the Kenyan government intervene,” said Wainaina.

The law affecting all lorries with foreign registration plates was effected on Monday. The Namanga border post is used mojorly by Kenyan trucks.

Mr Wainaina said Kenyan transporters have been suffering in silence pointing out 30-tonne Kenyan trucks, which are considered wide load in Tanzania are attracting more charges compared to the same capacity Tanzanian lorries entering Kenyan territory.

According to a circular by Tanzania Revenue Authority (TRA) seen by the Business Daily, all foreign vehicles ferrying cargo into Tanzanian territory must have a domestic tax certificate before authorisation to cross the border. Other trucks exporting to Tanzania are exempted from the new tax.

A spot check at the Namanga One Stop border point yesterday revealed that Kenyan drivers and truck owners opposed to the new charges were held at the Tanzanian side.

Truck owners importing goods into Kenya bitterly protested prompting a snarl up at the border point. Operations were halted temporarily with a few truck owners who adhered to the new rule allowed to proceed.

A 10-tonne truck ferrying perishable goods was slapped with Sh3,000 domestic tax under the new rule.

“We are slowly being edged from Tanzania transport business. Traders will be preferring Tanzania trucks which will be significantly cheap,” said John Lumelo, a truck owner.