Mombasa county has launched another attempt to collect levies on cargo at the port after earlier attempts were rejected by the Kenya Ports Authority (KPA).
Through the Finance Bill 2015/2016, the county wants to directly tax shipping lines and cargo owners unlike in the previous bid where it sought to tax KPA for goods handled.
The bill proposes to impose a ship weighing levy of $150 (Sh15,750) for vessels weighing between 3,000 and 10,000 tonnes while those of between 10,000 and 20,000 tonnes will pay $200 (Sh21,000).
The levy will be paid directly to the county government by the shipping line or its agent whenever a vessel docks at the port of Mombasa.
The bill also seeks to tax cruise vessels calling at the port by imposing a charge of $300 (Sh31,500) for a ship carrying between 50 and 100 people while a ship carrying more than 100 people will be charged $500 (Sh52,500).
Already, the new charges have attracted criticism from shipping agents, cargo importers and clearing agents who have threatened to stop implementation of the levies in court if they are passed by the county assembly.
Kenya Ship Agents Association chief executive Juma Tellah asked the National government to stop the county from imposing such levies as it would amount to double taxation. “We are already paying similar charges to Kenya Maritime Authority, Kenya Revenue Authority (KRA) and KPA, among other government agencies.
The new levies are illegal, double taxation and definitely will drive away shipping lines from the port of Mombasa,” he said. He said, if passed, the new levies will make the port un-competitive and expensive for traders.