Waste management and environmental degradation are in the interest of every individual. Governments from across the globe have developed and implemented stringent measures and strategies to curb the production of single-use plastic materials.
Besides, government agencies are encouraging companies to venture into recycling of plastics to minimize plastic pollution by incentivizing them. One instance is reducing the percentage of tax rates.
Kenya’s Finance Act 2019
Kenya’s Finance Act 2019 that was consented into law on 7th November 2019, resulted in a couple of amendments, including the reduction of the corporate tax for companies operating plastic recycling plants.
The tax reduced by half from 30% to 15% a move the Kenya Revenue Authority says it is a way of encouraging the recycling of plastic products with a long-term goal of reducing potential harmful effects on the environment.
The Act also exempts such companies from VAT plant, equipment, and types of machinery used in the construction of the plastic recycling plant.
How Important is the Change
Such a move comes at a time where the world at large is fighting against plastic pollution that is choking the water bodies, threatening aquatic life, interfering with the visual aesthetics of surrounding environs, including forests and parks.
The move is a boost to the law banning single-use plastics in Kenya, which is to take effect officially in June 2020. The ban is expected to enhance environmental sustainability after a successful implementation of the abolition of plastic bags that have left the environment cleaner than before.