President Uhuru Kenyatta’s government has resolved to implement what has been christened the “Big Four.” The President made it clear during the last Jamhuri Day celebration that during the next five years he will dedicate his energy, time and the resources of his administration to the Big Four. The Big Four are legacy projects ranging from manufacturing, universal healthcare, affordable housing and food security.
Of course these project require serious funding. Kenyan tax payer is already burdened by the increase of the “routine” taxes such as sin taxes and income taxes. There ought to be fiscal innovation to meet the budgetary needs and re-introduction of the estate duty abolished in 1980s may be the solution to raise the much needed cash for the projects Estate tax may be defined as a tax paid by a person who inherits money or property or a levy on the deceased person. Section 7 of the Estate Duty Act, Chapter 483 (now abolished by the Estate Duty (Abolition) Act no. 10 of 1982) provided that whenever any person dies a tax known as a estate duty shall be levied and paid on all property of which the deceased was at the time of his death competent to dispose; all the property which the deceased or any other person had an interest ceasing upon the death of the deceased, the proceeds of any policy of assurance on life of the deceased among others.
Curiously, the Act excluded application of the tax to His Excellency MzeeJomo Kenyatta and to His Excellency Daniel ToroitichArapMoi. However with the legislation of the Estate Duty (Abolition) Act in 1982 no estate duty may be levied on property which passes on death of any person who died on or after 1st January 1982.
With concerns about the runaway debt burden, the country needs to broaden its tax base for purposes of raising funds for its projects. This includes a re-introduction of the estate duty or estate tax as is sometimes called.
Read more at CapitalFM:: Re-introduce estate duty to fund the Big Four https://www.capitalfm.co.ke/eblog/?p=7342