Senator Orwoba wants removal of Eco Levy fee on local manufacturers of pads, diapers

Nominated Senator Gloria Orwoba has called for the removal of the Eco Levy fee for local manufacturers of pads and diapers.

Orwoba, who gained attention in 2023 for her activism against period poverty by arriving in Parliament with blood-stained pants, joined the Kenya Women Parliamentary Association (KEWOPA) in sharing their thoughts on the Finance Bill 2024.

The senator urged the Parliamentary Committee to reconsider the Eco Levy fee on local manufacturers of pads and diapers.

She also recommended amending Kenya Revenue Authority (KRA) regulations that prevent manufacturers of zero-rated products from claiming VAT.

“Early this morning, I presented my views on the Finance Bill. I requested the committee to: 1. Consider removing the Eco Levy fee for local manufacturers of pads and diapers. 2. Amend the KRA Corporate regulations that don’t allow manufacturers of zero-rated products to claim VAT,” Orwoba stated.

Regarding the proposed introduction of the Eco Levy, KEWOPA acknowledged its potential to promote environmental conservation and sustainability but emphasized the need to exempt essential goods like diapers from the levy.

Orwoba on essential goods costs

The association suggested revising the list of items subject to the Eco Levy, advocating for a downward adjustment of essential goods’ costs, as these may be burdensome for low-income households and persons with disabilities.

KEWOPA also represented by Dagoretti North MP Beatrice Elachi, recommended scrapping the motor vehicle tax due to the undue burden it would place on vehicle owners and the broader citizenry.

Commenting on the proposed Motor Vehicle Tax (MVT), Orwoba noted that the benefits of the tax have not been adequately highlighted for Kenyans to understand and appreciate.

KEWOPA further urged the Committee to consider zero-rating basic goods (such as bread, milk, and cream) and services used by the poor, as this would reduce final costs to consumers by lowering VAT along the production chain.

The association also shared perspectives on Clauses 46(a) and 46(b), which propose exempting inputs, raw materials, and machinery used in the manufacture of mosquito repellent from Import Declaration Fee (IDF) and Railway Development Levy (RDL).

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