First, under Tax measures, the Government, with effect from 12th June 2014, will allow all corporate and business entities to pay vacation trip expenses for their staff on annual leave in Kenya and deduct such expenditures in their taxes.
Through this measure, we shall directly give at least 25,000 Kenyans a chance to go for a week’s holiday every month at the expense of their employers, bringing to total over 300,000 additional Kenyan guests in our hotels throughout the country.
Second, with effect from 29th May 2014, all air ticketing services supplied by travel agents shall be exempt under the VAT Act, 2013 so as to enhance our competitiveness in the region.
Third, all outstanding income tax related refunds amounting owed to the tourism industry players will paid out by Kenya Revenue Authority not later than next Thursday 29th May 2014. We expect this measure to improve sector liquidity and cash-flow;
Fourth, to further encourage local guests in our National parks and attract both regional and international tourists,all park fees currently set at USD 90 per non-resident and KShs.1,200 per resident guest shall be reduced to USD.80 and KShs.1,000, respectively, effective 12th June 2014.
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