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Originally published by Nation Businessbusiness
May 12, 2026
10h ago
Why Treasury wants MPs to bring back mitumba tax
CS Mbadi defends plan for one-off tax payment at entry point, says it is aimed at easing traders' burden...
✨ Key Highlights
The National Treasury proposed a one-off tax on mitumba (second-hand clothes) to simplify existing multiple taxes. This proposal, however, was removed from the final Finance Bill, 2026.
- The proposed tax aimed to implement a 5% deemed profit on the customs value, taxed at 30%, effectively a 1.5% income tax.
- National Treasury Cabinet Secretary John Mbadi insisted on reinstating the provision, citing it as a solution to an "industry problem" requested by traders due to cumbersome tax payments.
- Mitumba traders reportedly found the current system of paying various taxes, including income tax after sales and requiring accountants, too expensive and cumbersome.
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