Co-operatives oppose proposed excise duty

BySacco Review

Aug 9, 2018

Titus Murithi

Co-operative stakeholders have asked the National Government to put aside proposals affecting Saccos in the current finance bill.
Tirus Nyaga , Southern Star Sacco Chairman, said the proposal requiring any bank transfer of Sh500, 000 and above to attract excise duty of 0.05 per cent amounted to double taxation.
“The proposal is not good for the Saccos because this move will see charges on members go up yet exercise duty was levied on them at their individual societies. This will make members have negative attitude towards Saccos,” he said.
In addition, Nyaga noted that the increase of taxation on dividend from 5 to 10 per cent will eat into members valued annual earning.
“Majority of Sacco members are low income farmers and taxing heavily their earning will turn them away from co-operative societies,” he said.
He said the move will result in slowdown in growth and development that members expected from their Saccos.
Nyaga called for more co-operatives support from county governments.
He was talking to Sacco Review at the Chuka Town stadium, where Tharaka-Nithi County will hold this year’s International Co-operative Day commonly known as Ushirika Day locally.
The county planning committee is chaired by Julius Riungu.

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