Environmental experts are expressing fears that the gains made in protecting the environment from plastic degradation may be lost if the proposed tax law amendment bill 2020 is passed by the parliament.
The Bill is seeking to delete the schedule that introduced a reduced corporation tax rate on companies running plastic recycling plants. The tax was reduced by 15% for the first five years from the time they commenced operations.
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They then became a subject to the corporation tax rate of 25% applicable to resident companies a move which waters down the efforts by the state in the recent past to protect the environment through measures such as banning the use of plastic bags and promoting the establishment of recycling plants according to an auditing firm KPMG.
The State banned the use of plastic bags for shopping in 2017, a move which had harsh economic effects on over 100 manufacturers across the country.
The UN estimates that over 100 million plastic bags were given out to kenyan shoppers every years by supermarkets handed alone and since the ban, over 80% of Kenyans have stopped using plastic bags.
This is could be encouraging but still other alternatives still pose a serious threat to environment. Importers and manufactures of the banned bags or anyone found selling can be fined up to Shs. 4 million or jailed for a term not exceeding four years.
