An International Non-Governmental Organisation urges tax expose

By LUKE ANAMI

Nairobi,Kenya:An international Non-Governmental Organisation wants legislation that will compel investors to detail the tax incentives they receive from the Government.

Following the release of their June 2013 report which revealed that Kenya losses over Sh100 billion every year in tax incentives issued to multinational companies, Action Aid wants the multinationals to make available records of their activities for scrutiny.

“Only a few countries publish tax expenditure reports detailing the tax incentives they are offered. In Kenya it is difficult to access information on tax incentives. We therefore call upon the MPs to come up with a legislation that will compel such multinationals to avail such information,” Pascaline Kang’ethe, Technical Adviser Action Aid said in an interview with The Standard.

She said Kenya Revenue Authority should avail a list of investors and the tax incentives granted in a transparency manner. Further, KRA should be able to tell the public how such tax incentives were arrived at, and how Kenyans will benefit from such investments.

tax incentives

“It is very difficult to access information on tax incentives. The law should state what a tax incentive constitutes and who should be granted one to avoid a situation where discretionary incentives are granted to friends and cronies in secret. It should also allow free access of such information to the public.” She said many countries are losing revenue through unrecorded tax incentives.

“Indeed in many countries it seems that even the government itself is not aware how much revenue is foregone.,” stated Kang’ethe. Other states that have lost millions through tax incentives are Rwanda, Tanzania and Zambia.