MPs to probe 14 companies over Sh15bn tax exemptions  | Nation

Parliamentary Investigation into VAT Exemptions

The Kenyan Parliament has launched an investigation into 14 companies that received a total of Sh15 billion in Value Added Tax (VAT) exemptions. This action follows concerns about the country's ability to meet its revenue targets and questions surrounding the justification for these exemptions.

Companies Under Scrutiny

The investigation focuses on companies like Devki Steel Mills, National Cement Company, Soit Sugar, Angata Sugar Mills, Rai Cement, and others, detailing specific exemption amounts and associated investments. A list of the companies and the amounts they received is provided in the article.

Concerns and Arguments

MPs are concerned about the potential misuse of tax exemptions, which have reportedly cost the country over Sh300 billion in the current fiscal year. The investigation will determine if the exemptions were warranted, assess the authenticity of claimed investments, and explore the possibility of retrospective application of the Tax Laws Amendment Act.

• The Finance and National Planning Committee will examine the nature of the investments.
• A Parliamentary Budget Office report indicates significant revenue loss due to tax exemptions.
• MPs raised concerns about the backdating of the Tax Laws Amendment Act.

Potential Impact

The outcome of this investigation will significantly impact future tax policies in Kenya. The MPs emphasize the need for stringent scrutiny of tax exemptions to prevent abuse and ensure that such policies support economic growth without compromising revenue generation.