People with disabilities have called for a review of the current tax exemption laws, describing them as punitive. They called on the National Assembly and Treasury to examine the current tax exemption legislation.
They seek additional changes to the Persons with Disabilities (Income Tax Deductions and Exemptions) Order 2010 and the Persons with Disability Act 2003, which serve as the legal foundation for granting income tax exemptions to individuals with disabilities.
Michael Makarina and Hafid Maalim, the PWD chairman for the North Eastern region, raised the concern during a press conference on Wednesday.
“We don’t think this requirement is necessary because the disability often does not go away or change, so why is an assessment every five years necessary?” Maalim said.
Individuals with disabilities may apply for income tax exemptions under the current order on earnings up to Sh1.8 million annually or Sh150,000 per month.
“We are requesting a general exemption that would cover all taxes, including VAT, to prevent ambiguity and confusion. The exemptions process should be made easier because the majority of these PWDs need accommodations.”
The applicant must be registered with the Council for Persons with Disabilities (NCPWDs), have a disability membership card, and have a disability assessment report from a government-gazetted hospital that describes the type of disability in order to be eligible for tax exemption under the cited provisions.
The individuals must be in receipt of income subject to taxation under the Income Tax Act.
Hafid urged employers to offer the required monthly tax relief and urged the Kenya Revenue Authority to ensure adherence to current tax relief regulations.
Makarina said some employers were not implementing the law’s tax relief of Sh36,700 per month for workers with disabilities, and he urged KRA to make sure that employers do so.
“As much as we would like these tax breaks to be reviewed further, we want the current rules to be followed first. When we take this action, I do not believe we are asking for too much,” he stated.
The group urged President William Ruto to personally step in and secure PWDs’ tax exemption from all sources.
“Being in a position of leadership is a calling, and it
all comes down to implementing policies that benefit
the underprivileged and marginalised members of society. Nobody wants to be a PWD, so let us be respected and given the assistance we so desperately need,”
Hafid said.
