{"id":7303,"date":"2020-05-07T00:00:30","date_gmt":"2020-05-07T00:00:30","guid":{"rendered":"https:\/\/www.africa-press.com\/kenya\/?p=7303"},"modified":"2020-05-07T00:00:30","modified_gmt":"2020-05-07T00:00:30","slug":"tax-breaks-amid-restrictions-wont-lift-economy-study-says","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/economy\/tax-breaks-amid-restrictions-wont-lift-economy-study-says","title":{"rendered":"Tax breaks amid restrictions won&#8217;t lift economy, study says"},"content":{"rendered":"<p><strong>AfricaPress-Kenya:<\/strong> Tax cuts proposed by the Government amid a coronavirus-spurred economic downturn will be of little help to the economy if restrictions on movement are not lifted, a study shows.<\/p>\n<p>According to the Stanbic Bank Kenya Purchasing Managers\u2019 Index, falling demand, input shortages and lockdown restrictions through the month of April saw the headline index fall to a three-year low from 37.5 percent to 34.8 per cent.<\/p>\n<p>The index revealed that cuts on Value Added Tax (VAT), Pay As You Earn (PAYE) and Turnover Tax proposed by President Uhuru Kenyatta last month will not improve the business environment until movement restrictions are eased.<\/p>\n<p>\u201cCompanies reported difficulties in obtaining inputs during April, mostly due to weaker supply of items and constraints on vendors amid curfew policies in Nairobi,\u201d said the report.<\/p>\n<p>\u201cDelivery times lengthened while stock levels were curtailed sharply as firms noted that the duration of the pandemic remained unknown.\u201d New orders for goods and services from both local and export markets fell to the lowest in the history of the Index, surpassing the economic uncertainty experienced during the 2017 general elections.<\/p>\n<p>The slow economic pace has resulted in significant job losses with some companies struggling to meet overheads and credit obligations.\u201cAmid weaker sales in the Kenyan private sector, firms sharply lowered employment numbers in April,\u201d explained the report. \u201cIn fact, the rate of reduction was the most marked since data collection began in January 2014.\u201d<\/p>\n<p>According to Jibran Qureishi, Stanbic Bank\u2019s Regional Economist for East Africa, efforts by the Central Bank of Kenya (CBK) to boost liquidity as well as the proposed tax breaks announced last month will need to be sustained for longer to improve business conditions in the country.\u201cBecause of the diversified nature of Kenya\u2019s economy, the country appears more resilient to the impacts of coronavirus compared to other economies in the region,\u201d explained Mr Jibran.<\/p>\n<p>\u201cHowever, this is very unprecedented and sectors like tourism will take longer to recover as travelers limit movement until a global vaccine is found or new infections and deaths go down to zero.\u201d<\/p>\n<p>\u201cBanks are holding on to liquidity and giving credit depending on borrowers risk-profiles and going forward, some will have to increase provisions for non-performing loans,\u201d he said.Quresihi further noted with consumption suppressed due to lockdowns, tax reliefs introduced on VAT, PAYE and Turnover Tax might be ineffective.\u201cIn the short term these tax breaks will widen the country\u2019s fiscal deficit,&#8221; said Qureishi.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>AfricaPress-Kenya: Tax cuts proposed by the Government amid a coronavirus-spurred economic downturn will be of little help to the economy if restrictions on movement are not lifted, a study shows. According to the Stanbic Bank Kenya Purchasing Managers\u2019 Index, falling demand, input shortages and lockdown restrictions through the month of April saw the headline index [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":7304,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[939,1293,2771],"class_list":["post-7303","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-coronavirus","tag-economy","tag-taxes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Tax breaks amid restrictions won&#039;t lift economy, study says - kenya<\/title>\n<meta name=\"description\" content=\"Tax cuts proposed by the Government amid a coronavirus-spurred economic downturn will be of little help to the economy if restrictions on movement are not\" \/>\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\/tax-breaks-amid-restrictions-wont-lift-economy-study-says\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tax breaks amid restrictions won&#039;t lift economy, study says\" \/>\n<meta property=\"og:description\" content=\"Tax cuts proposed by the Government amid a coronavirus-spurred economic downturn will be of little help to the economy if restrictions on movement are not\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/economy\/tax-breaks-amid-restrictions-wont-lift-economy-study-says\" \/>\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=\"2020-05-07T00:00:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/eritrea\/sites\/28\/2020\/05\/769cef976792c262d6f32fc395e84eac.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"575\" \/>\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\/tax-breaks-amid-restrictions-wont-lift-economy-study-says#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/tax-breaks-amid-restrictions-wont-lift-economy-study-says\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Tax breaks amid restrictions won&#8217;t lift economy, study says\",\"datePublished\":\"2020-05-07T00:00:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/tax-breaks-amid-restrictions-wont-lift-economy-study-says\"},\"wordCount\":416,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/tax-breaks-amid-restrictions-wont-lift-economy-study-says#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/eritrea\/sites\/28\/2020\/05\/769cef976792c262d6f32fc395e84eac.jpg\",\"keywords\":[\"Coronavirus\",\"Economy\",\"Taxes\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/economy\/tax-breaks-amid-restrictions-wont-lift-economy-study-says#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/tax-breaks-amid-restrictions-wont-lift-economy-study-says\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/economy\/tax-breaks-amid-restrictions-wont-lift-economy-study-says\",\"name\":\"Tax breaks amid restrictions won't lift economy, study says - 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