Glass firms want Comesa tax structure implemented

Glass companies want the Government to implement the Comesa external tariff. They argue that goods destined for other countries are being diverted into the local market because of the current tax structure. "We appeal to the minister for Trade and Industry to effect the proposed 25 per cent common external tariff on lantern globes and introduce a post-budget amendment disallowing the warehousing of re-export household glass," said Mr Richard Githii, the marketing director of Nairobi's Milly Glass Works.

The industry uses 98 per cent local raw material, and is adversely affected by low taxation, particularly for imported globes, he said.

Cheap imported warehoused glassware is flooding the local market.

"Our conversion capacity is over 200 tonnes per day, but we currently run at half our potential due to this problem, which is affecting our capacity to increase the workforce in line with the Government’s jobs creation goal," he said.

The firm employs 400 people directly and supports other industries such as sand harvesting and soda ash and limestone production. It manufacturers glass tableware, globes and soft drinks bottles.

Previous attempts by the industry to have the Government take action had failed, Mr Githii said.

600450 Glass firms want Comesa tax structure implemented
Date: 30 July 2003

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