Regional paint manufacturer, Crown Paints has welcomed the government’s move to support paint and resin manufacturing by amending the Excise Duty Act to allow refunds for excise duty paid on illuminating kerosene that is used in the manufacturing of paints and resin.
Commenting on 2017/18 fiscal year budget read by Treasury Cabinet Secretary Henry Rotich, Crown Paints chief executive officer Rakesh Rao said the move will make paint products more competitive and boost exports to other markets.
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Crown Paints growth strategy in the region is anchored on creating regional hubs across Tanzania, Uganda and Rwanda wherein investing in local manufacturing with satellite plants, local marketing and dealer networks.
Crown Paints uses over 2.4 million litres of kerosene annually and the government’s move to allow a refund of excise duty paid on illuminating kerosene will spur growth of the paint market.
“If passed, this amendment will help us offer competitive prices to our consumers in the Kenyan market, and especially in our economy product range thus enabling the growth of the small scale furniture making industries,” Rao added.
During 2017/18 budget reading, the Government said it had noted the huge potential for growth in the paint and resin manufacturing industry for matching the high demand in the construction industry. “Illuminating kerosene is a critical input in this sector and it is important that we make amendments to enhance economical development,” said Henry Rotich, the Cabinet Secretary for Treasury.
[crp]
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