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Incentives for plastics management

Incentives for plastic recycling

The Kenyan government has toyed with incentives to promote cleaning of plastics from the environment. The 2019/20 national budget statement made provisions for the following incentives:-
1. Exemption from VAT for all services offered to plastic recycling plants and supply of machinery and equipment used in the construction of these plastic plants.
2. Reduction of corporation tax from 30% to 15% for the first five years for any investor operating a plastic recycling plant. ,br> 3. Deleted the provision for charging Excise Duty on plastic shopping bags to align it with the Environmental Management and Coordination Act which banned them from use.

This gesture by the government has the capacity to encourage new investment in plastic recycling plants, create jobs and support environmental conservation as aspired under the Sustainable Development Goal (SDG) No 12 “Ensure sustainable consumption and production patterns”. This gesture is in tandem with the other efforts by government of strengthening legal and policy framework, providing incentives to the private sector as well as establishment of EPR schemes.

References

Institute of Economic Affairs 2007, Budget Guide 2007. Downloaded on 27th June 2019 at file:///C:/Users/user/Downloads/Budget-Guide-2007---2008.pdf

Question

    What kind of incentives has the Kenyan government extended to the plastics sector?