East African countries are losing approximately $2 billion or about 200 billion shillings of revenue every year by granting tax incentives to multinational companies. According to a new report by the tax justice network – Africa and actionaid, four EAC countries; Tanzania, Kenya, Uganda and Rwanda are all providing generous tax breaks in the form of tax holidays, capital-gains tax allowances and royalty exemptions to various transnationals organization, and these East African countries continue to lose colossal amounts of revenue through the unnecessary tax exemptions and incentives given to these corporations. The report, entitled ‘still racing towards the bottom? Corporate tax incentives in East Africa’, follows the EAC report series produced by the two organizations in April 2012. The report, notes that that while statements indicating commitments to revise tax incentive policies have been made by policymakers of the region, many questions abound on how eliminating tax incentives will be realized.
Watch KTN Live
Watch KTN News
Follow us on
Like us on
source
Be First to Comment