The disabled still pay tax despite exemptions

By Ally Jamah

Thousands of people with disabilities pay income tax on their salaries without knowledge of exemptions they are entitled to.

Since the tax-exemption policy for the disabled was implemented in April, only 200 people have benefited. More than 15,000 people may be eligible for the tax exemptions.

This is the official number of disabled people in formal employment in the public and private sectors.

It is estimated that Kenya has four million people with various forms of mental and physical disabilities, but only a few have formal jobs.

The Communication Officer of the National Council for Persons with Disabilities (NCPWD) Isaac Mwaura says 700 applications are still pending, a figure that is still too low.

boost awareness

"It appears that many disabled people are not yet aware that they are entitled to tax exemptions on their salaries. We will boost awareness of this fact," he said.

All tax-relief applications have to be reviewed first by NCPWD before they are forwarded to the Kenya Revenue Authority’s Domestic Tax Department.

"We urge disabled people to apply and benefit from the tax exemption and improve their lives with that extra income," urged NCPWD’s Director Phoebe Nyagudi.

Under the tax exemption notice gazetted by Finance Minister Uhuru Kenyatta, disabled people earning less than Sh150,000 are not required to pay the 30 per cent income tax other employed Kenyans pay.

They are also allowed to claim tax relief from drugs and treatment they receive in hospitals.