Friday, November 8, 2024 - National Treasury Cabinet Secretary John Mbadi has strongly defended President William Ruto’s government's measures to widen the tax base by introducing taxes on religious organizations.
In an interview, Mbadi stated that all organizations and individuals engaged in business must pay taxes to ensure equity in taxation, emphasizing that those providing taxable services should not be exempt.
“If you’re doing business, then
you must pay tax. Taxes are paid by people who can afford it,” he said,
emphasizing that the education system run by religious institutions should also
be subjected to taxes.
He noted that under his watch he
will not support any taxation of the faith-based organizations in any way as
long as they are not engaged in any business.
However, he noted that religious
organizations doing business will not be exempted from paying taxes like other
business entities.
“We must be aware of certain
factors, presently, charitable factors are not subjected to taxation, including
education institutions,” he said, underscoring the need for everyone doing
business to pay taxes.
CS Mbadi decried some of the
said institutions charging Ksh1 million per term on students while the
government doesn’t tax them, yet at the same time mama mboga who
is selling sukuma wiki in Gikomba is taxed.
"We tax the low-income
earners much more than we tax high-income earners because of unfair tax
practices," CS Mbadi lamented.
“It is unfair for such religious
organizations to fail to pay taxes if you are doing business please pay taxes.
If it is purely religious activities then there is no need to pay taxes to
those who are involved in business,” he added.
Churches in Kenya do not pay
taxes on their income derived from offerings and donations as long as such
income does not come from business operations.
The Kenyan DAILY POST
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