Tax relief for plastic recyclers

Bernard Gitau @benagitau

The war against plastic pollution got a boost yesterday after the government proposed VAT tax exempt in all services offered to plastic recycling plants.

The tax exempt was extended to supply of machinery and equipment used in the construction of these plants.

Treasury CS Henry Rotich said this is aimed at supplementing President Uhuru Kenyatta’s directive which banned the use of single-use plastics in protected areas effective June 5, 2020.

The President made the directive early this month while addressing the plenary session of the ongoing Women’s Deliver 2019 Conference in Canada.

The ban will cover all national parks, forests, beaches and conservation areas.

This comes two years after Kenya banned the use, manufacture and sale of environmentally harmful plastics, polythene bags and packaging materials.

“Further, to encourage investment in plastic recycling, I propose to lower corporation tax to 15 per cent for the first five years for any investor operating a plastic recycling plant,” Rotich said.

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