Kenya: State Plans to Tax Schools Offering Services Not in Education Curriculum

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Kenya: State Plans to Tax Schools Offering Services Not in Education Curriculum
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Services provided in schools that are not related to the education curriculum will soon be taxed under a new proposal by the National Treasury.

Treasury argues in the Draft Medium-Term Debt Strategy for the periods 2024/25 and 2026/27 that the current blacket value added tax exemption is unfair as some institutions offer services that are vatable.

"However, the benefit of the exemption is not uniform across all learners due differences in fees charged and services provided. Some schools provide some services that are not directly related to education," Treasury says. "To remove this discrimination, there is need to impose VAT on the additional benefits. In this respect, the Government will explore the introduction."

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