From The Star
Kenya loses an estimated Sh100 billion annually through tax incentives to multinational companies and their tax avoidance tricks, according to new report.
This goes on despite the government’s pressure on local firms and individuals for extra taxes to bridge the budget deficit of over Sh300 billion. One such measures is the proposed VAT Bill which has received a lot of opposition.
A report released yesterday by non-governmental organisation, ActionAid, showed that Kenya gave up $123 million (Sh10.5 billion) under the generalised corporate tax incentives based on the 2008/2009 financial results. This equals 21 per cent of the corporate tax collected in the same year.
Foreign firms are supposed to pay 37.5 per cent of their profits as tax, with locals paying 30 per cent. A further $120 million (Sh10.2 billion) was lost through incentives to exporters and $68 million (5.8 billion) through Special economic zones.
Read more at the-star.co.ke