Fred Aminga @faminga
Turkana county has legislated new laws which will see investors in the mineral rich region pay higher rates to mine her wealth.
The laws which increased taxes in the extractive sector doubled prospecting permit for oil and gas production to Sh2 million per acre for foreign companies, while national companies will now pay Sh1 million, private and local firms will start paying Sh400,000 and Sh250,000 respectively.
Charges for renewal of these permits also increased from Sh500,000 to Sh750,000 for foreign companies, Sh250,000 to Sh450,000 for national companies, Sh100,000 to Sh250,000 for private firms and Sh50,000 to 75,000 for local firms.
Drilling fees for oil and gas increased to Sh1.5 million per well from Sh1 million. The new charges came after Governor Josphat Nanok appended his signature to the Turkana County Finance Bill, 2018 on Wednesday, effectively changing the tax regime to boost revenue while cushioning small and medium enterprises (SMEs) in the process.
The amendments which had been passed by the county assembly are said to have been informed by the need to balance county government’s revenue targets while fostering growth of small businesses.
Charges during weighing scale inspection, stamp fees for single businesses, Jua Kali artisan permits, garage services charges, procession of building plans, and land survey are expected to ease with the new law.
The law sets prospecting fee for renewable energy at Sh750,000 per acre for foreign companies, Sh500,000 and Sh200,000 for national and local firms, respectively.