Marketers raise alarm over rogue traders

By LILLIAN KIARIE

Marketers have raised alarm over unscrupulous traders who are exorbitantly increasing prices of non-vatable goods and services, riding on the recently effected tax regime.

The vice has prompted the Chartered Institute of Marketers (CIM), Eastern Africa to call upon marketers and sales persons to reign in on distributors and suppliers who have arbitrarily increased goods and services blaming it on VAT.

Mr James Ngomeli , chairman of CIM said some traders had increased the prices of commodities by 20 per cent without justification pilling more pressure on Kenyans.

“Since coming into force of the VAT Act, we have seen non-vatable products attracting hoax VAT and those that are set to attract the 16 per cent tax have been increased by more than 20 per cent,” he said. Ngomeli added that this goes against the spirit of why the law was passed and continues to erode the good will of citizens towards the government.

 “Our members are in charge of the retail outlets and even set prices. We would like to appeal to them to ensure their products are not overpriced and their retailers do not take advantage of the situation,” Ngomeli said when he met distributors who had met to discuss pressing issues.

“We would like to rally members of the association to share the pain with their customers and ensure that increase does not exploit the already overburdened customers,” he said.

He also said CIM had identified a few firms that have unjustified high prices and urged them to heed this call. “We will be writing to them through our members to adjust the prices. Most of the members we have talked to have complied or given compelling reasons to do so in due time,” he added.

“We will monitor the situation and those who don’t comply will be taken to task by our team through their membership as this goes against our professional ethics.”

The VAT Act 2013, enforced as part of the government’s efforts to increase revenues, was enacted three weeks ago.