Select Kenyans could soon be entitled to lucrative tax exemptions should the Persons with Disabilities Bill, 2023 sail through.
The Bill, which was presented in the Senate and tabled at the National Assembly on March 4, proposes exemptions for taxes, including income tax, for parents, guardians, and employers of People Living With Disabilities (PLWD).
Notably, the tax exemptions will also be extended to people with various disabilities.
Parents/ Guardians
As highlighted in the bill, it is proposed that parents and guardians of people with disability access income tax exemptions of Ksh150,000.
However, the parents will have to apply for such an exemption from the Cabinet Secretary in charge of PLWD.
Further, parents who cannot be able to fend for their children will be entitled to a government relief programme of Ksh10,000 should the proposal pass.
"The Cabinet Secretary responsible for matters related to finance may, on application by a parent or guardian of a person certified with severe disability and incapable of catering for their basic needs, grant an income tax exemption of Ksh150,000 to the parent or guardian, if the person with severe disability is in the care and custody of the parent or guardian.
"The Cabinet Secretary responsible for matters related to social protection may on application of a parent or guardian who is indigent and assumes full custody and care of a person certified with severe disability and incapable of catering for their basic needs, grant a long-term social assistance monthly cash transfer of not less than Ksh10,000 in accordance with the Social Assistance Act," read the bill in part.
Employers
On the other hand, Employers of people with disability will also be able to apply for tax exemptions on account of various initiatives that they undertake to make working conditions comfortable for their disabled employees.
One of the initiatives to be considered in the application of exemptions is the provision of assistive devices such as hearing aids.
"Any person who employs a person with disability and who incurs reasonable expenses on account of reasonable accommodation of the employee with disability and modification of any part of the workplace designed to meet the needs of the employee with disability shall be entitled to deductions of the expenditure incurred in the computation of their taxable income," the bill proposed.
PLWD
Likewise, people with disabilities will also be entitled to tax incentives such as exemptions to income tax and other levies upon successful application to the relevant cabinet secretary.
"The Cabinet Secretary responsible for finance shall, in consultation with the Council, assess all applications received under subsection (1) and may exempt the applicant wholly or partially in accordance with the Income Tax Act, Cap 470.
"Subject to subsection (2) above, if an assessment demonstrates that an individual has a permanent disability, that person will be exempt from future assessments," read the bill in part.
PLWD will also be exempted from paying import duties and Value-Added Tax (VAT) for machinery and equipment such as vehicles.
"The purchase, importation, transfer or gift of health materials or equipment relating to persons with disability shall be exempted from import duty and VAT to the extent provided under the tax laws," the bill added.
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