The Kenya Revenue Authority (KRA) Head of Corporate Tax Policy Unit Morris Orier, however remains upbeat about the exemptions, noting that they advised Treasury about it. Institute of Economic Affairs Chief Executive Kwame Owino says Kenya introduced a new VAT law in 2012 to simplify VAT tax codes administration on VAT. There were so many VAT refund claims especially from manufactures,” Owino said. Some exemptions, especially those targeting Foreign Direct Investment and vehicle assemblers are a result of big business players lobbying, and Treasury bending to their demands. VAT refundZero-rating products - especially basic commodities such as Unga, means that the manufacturer can claim VAT refund even for the ingredients he used to mill.

Source: Standard Digital April 18, 2017 07:07 UTC