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Tax exemption for solar will woo investors

Sustainable and affordable energy is one of the goals of Kenya Vision 2030 and the government has, without a doubt, been offering incentives to potential investors in renewable energy.

Investors in this sector have also had their fair share of hardships, and this was expressed by the drastic ascension into law of the Tax Law Amendment Bill 2020, which sought to put up taxation on this sector.

This Bill proposed a 14 per cent VAT tax on all imported supplies in this field, ostensibly to cushion the economy from the adverse effect of the global Covid-19 pandemic.

These changes would have had a pseudo motive — to dampen the investors’ appetite in the sector, besides leading to higher prices of solar equipment and, therefore, forcing suppliers to transfer the tax pressure to consumers.

Read more: Nation

 


 

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