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Mutua hails measures to boost tourism

26 May 2014, 09:16

Nairobi - Machakos County Governor, Alfred Mutua, has lauded President Uhuru Kenyatta’s move to save the country’s tourism sector.

Mutua said that tourism tax waivers were a good and timely move by the President.

He added that it was an excellent shift from “squeezing” taxes out of poor Kenyans to enabling wealth creation.

“To generate employment, we need more of such incentives that enable different sectors to grow, make money and hence pay more taxes,” said Mutua.

He further said that other countries had waived tax with good results.

“In The United Arab Emirates (UAE), income tax is zero. Businesses invest in Dubai, UAE because the tax rate for businesses is at a maximum of 5%. In Mauritius is it is capped at a maximum of 15%, which is half of what Kenya businesses are taxed,” said Mutua.

Last Friday, Kenyatta moved to launch a series of measures targeted at stimulating the tourism sector recovery.

Among the measures, the Government, with effect from June 12, would allow all corporate and business entities to pay vacation trip expenses for their staff on annual leave in Kenya and deduct such expenditures in their taxes.

The President stated that through this measure, the country will directly give at least 25 000 Kenyans a chance to go for a week’s holiday every month at the expense of their employers, bringing to total over 300 000 additional Kenyan guests in our hotels throughout the country.

 – CAJ News

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