As Kenyans continue to plead with the government of Kenya to “have mercy” on businesses and individuals by easing the high taxes, the National Assembly has landed with a shocker, passing a motion to exempt Japanese companies and employees from income tax.
“The committee recommends that the House approves the exemption of Income Tax from Japanese companies, employees, and consultants in accordance with Section 62 of the Income Tax Act,” said MP William Kamket.
Currently, Japan is supporting 16 projects in Kenya, four of which are grants while the rest are as a result of loan agreements between the two partners. Kenyans have raised concerns and questioned the priorities of this government.
Section 13(2) of the Kenyan Constitutions allow the Treasury Cabinet Secretary Ukur Yatani to exempt certain activities from taxation and the notice must be published in the gazette and must be submitted to the National Assembly.
Yatani issued a legal notice on the tax exemption on February 26, which was later on submitted to the Kamket-led committee for ratification.
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“The policy and requirement of the government of Japan are to have Japanese companies, consultants, and employees involved in the implementation of any project financed by the government of Japan, exempted from tax,” Kamket told the House on Wednesday, May 19.