The County Government of Mombasa is threatening to enact a Bill that could increase levies charged on shippers at the port by introducing the infrastructure development levy.
The Bill could raise the cost of imports and reduce the competitiveness of the port of Mombasa. The Shippers Council of East Africa (SCEA) have appealed to the government to overturn the law if passed by the county assembly.
The county which is struggling financially sees the port as potential source of cash that could revolutionize revenues. The proposal which was opposed last year has again been introduced in the finance bill 2016/2017.
The county intends to charge Sh5000 on every 20-foot container and Sh9000 for every 40-foot container. Shippers however argue that they are already paying taxes to the government and that they cannot face double taxation.
“We hope that the government will intervene and degazette the rule,” SCEA chief executive Gilbert Langat said reacting that to the county’s move to include the proposal  in the finance bill of this financial year.
The shippers noted that this could affect Mombasa as the port of choice for ships in favour of adjacent ports such as Dar.
Source: The Exchange

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