{"id":23242,"date":"2021-02-26T22:27:24","date_gmt":"2021-02-26T22:27:24","guid":{"rendered":"https:\/\/www.africa-press.net\/kenya\/?p=23242"},"modified":"2021-02-26T22:27:24","modified_gmt":"2021-02-26T22:27:24","slug":"its-official-mcas-car-grant-will-attract-30-per-cent-tax","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/economy\/its-official-mcas-car-grant-will-attract-30-per-cent-tax","title":{"rendered":"It\u2019s official: MCA\u2019s car grant will attract 30 per cent tax"},"content":{"rendered":"

AfricaPress-Kenya:<\/strong> The taxman has deflated the spirits of Members of County Assemblies after confirming that the car grants they received from the State will be taxed.<\/p>\n

In an advisory to the chairman of the Council of Governors (CoG) Chairman Martin Wambora, the Kenya Revenue Authority (KRA) said the loan, which had been converted into a grant following a presidential decree, would attract a 30 per cent income tax before hitting the accounts of MCAs.<\/p>\n

\u201cOn the issue of \u2018car grant,\u2019 since it is payable to the said employees in form of cash, it therefore qualifies as income from employment as \u2018other allowances’,\u201d said KRA\u2019s Commissioner of Domestic Taxes Rispah Simiyu.<\/p>\n

Earlier, MCAs had protested the tax charge, noting that slapping the grant with an\u00a0income tax of 30 per cent\u00a0would leave them with insufficient money for better cars.<\/p>\n

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Initially, the money was given in the form of a loan, which President Kenyatta turned into a grant. The decision has since been backed by the Salaries and Remuneration Commission (SRC).<\/p>\n

However, KRA noted that the tax payout would be in compliance with the law.<\/p>\n

Mrs Simiyu said KRA issued the advisory following several inquiries from counties.<\/p>\n

Each MCA got a car grant of Sh2 million, which means that the State will pay Sh4.5 billion to the 2,224 ward representatives.<\/p>\n

Governors were given the greenlight to convert the loan into a grant by SRC chair Lynn Mengich in line with President Kenyatta\u2019s pledge to MCAs.<\/p>\n

Last week, however, Controller of Budget Margaret Nyakango raised concerns on the move.<\/p>\n

In a letter to SRC Chief Executive Officer Ann Gitau, Nyakango\u00a0cautioned that most counties budgeted had for a car loan facility and not a grant.<\/p>\n

\u201cIn others, the car loan facility is being implemented through a legislation enacted to create a revolving fund. These legislations do not provide for issuance of car grant,\u201d said Ms Nyakango. The letter was copied to CoG and County Assemblies Forum.<\/p>\n

She said some counties merged the car loan facility with mortgage facility into the revolving fund.<\/p>\n

\u201cWe therefore seek your clarification on how to convert the car loan facility into a car grant benefit, taking into consideration the scenarios raised and how to treat the interest so far repaid by the beneficiaries,\u201d Nyakango told SRC in the letter dated February 17.<\/p>\n

Mengich responded to a letter by CoG chair giving consent to MCAs’ car grant, which immediately got condemnation from some quarters, terming it a \u201cbribe\u201d to entice ward representatives into passing the Building Bridges Initiative Bill.<\/p>\n","protected":false},"excerpt":{"rendered":"

AfricaPress-Kenya: The taxman has deflated the spirits of Members of County Assemblies after confirming that the car grants they received from the State will be taxed. In an advisory to the chairman of the Council of Governors (CoG) Chairman Martin Wambora, the Kenya Revenue Authority (KRA) said the loan, which had been converted into a […]<\/p>\n","protected":false},"author":84,"featured_media":23053,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[7309,412],"class_list":["post-23242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-car-grants","tag-kra"],"yoast_head":"\nIt\u2019s official: MCA\u2019s car grant will attract 30 per cent tax - kenya<\/title>\n<meta name=\"description\" content=\"The taxman has deflated the spirits of Members of County Assemblies after confirming that the car grants they received from the State\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/kenya\/economy\/its-official-mcas-car-grant-will-attract-30-per-cent-tax\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"It\u2019s official: MCA\u2019s car grant will attract 30 per cent tax\" \/>\n<meta property=\"og:description\" content=\"The taxman has deflated the spirits of Members of County Assemblies after confirming that the car grants they received from the State\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/economy\/its-official-mcas-car-grant-will-attract-30-per-cent-tax\" \/>\n<meta property=\"og:site_name\" content=\"kenya\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2021-02-26T22:27:24+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/02\/its_defining_mome6033f0d43e044.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"500\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/its-official-mcas-car-grant-will-attract-30-per-cent-tax#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/its-official-mcas-car-grant-will-attract-30-per-cent-tax\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"It\u2019s official: MCA\u2019s car grant will attract 30 per cent tax\",\"datePublished\":\"2021-02-26T22:27:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/its-official-mcas-car-grant-will-attract-30-per-cent-tax\"},\"wordCount\":431,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/its-official-mcas-car-grant-will-attract-30-per-cent-tax#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2021\/02\/its_defining_mome6033f0d43e044.jpg\",\"keywords\":[\"Car grants\",\"KRA\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/economy\/its-official-mcas-car-grant-will-attract-30-per-cent-tax#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/its-official-mcas-car-grant-will-attract-30-per-cent-tax\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/economy\/its-official-mcas-car-grant-will-attract-30-per-cent-tax\",\"name\":\"It\u2019s official: MCA\u2019s car grant will attract 30 per cent tax - 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