Business & Financial News

New report sparks debate on sidelining women in tax policies

By Steve Umidha

In theory, and more widely, Kenyan women are too easily relegated to the ‘less competent than men’ category when it comes to crafting tax policies, a new study has found.

The Intersectionality, Marginalization and Gender Tax Inequality in Kenya report by East Africa Tax and Governance Network (EATGN) in a renewed push to champion for fairer taxation for sustainable development, further says that the country’s tax disparity that continues to sideline women on such subtle decision-making processes is a terrible waste of potential.

“Gender tax inequality is the manifestation of tax disparity related to “the productivity of labor and the    allocative efficiency of the economy,” adding that, “In this case, opportunities for specific groups shrink because of gender inequality thereby affecting: rewards for work; human resources; access to capital; and control of other productive resources,” reads the working paper report in part.

He was speaking Wednesday during the launch of the report in Nairobi.

All too often, these women are ‘locked out’ of such procedures against their will according to EATGN’s Leonard Wanyama (pictured), who believes that  there is more than meets the eye in the contentious subject.

“There are circumstances that result in them being locked out inadvertently – not by their choice, the context that comes up then begins to lock them out, they are very interested, for instance if you call them (to take part in public participation or a meeting) they will come, but, if calling that meeting means culturally you have to then separate them, then you find that that is the action kind of starts to lock them,” says Mr. Wanyama.

Kenya has a broad taxation system covering income taxes, value-added tax (VAT) and Customs and excise duty, which are governed by independent legislations that make provisions for the charge, assessment and collection of the respective taxes.

The country’s tax agency Kenya Revenue Authority (KRA) has different sections that deal with the above taxes and have authority to undertake reviews on companies to confirm they are paying the right tax – but it is the hewing of such revenue systems and tax policies at their early stages that women feel prevented from taking part.

The researchers believe that tax system in Kenya has not been gender inclusive, thereby impacting on women negatively due to the underlying consumption patterns and the various trends in the labor market.

The study now wants women and marginalized groups to be judged not as such, but as members of the workforce who have what they have to offer, whether as researchers, employers, they should be offered similar opportunities as their male counterparts to continue to be good at what they do.

“This is to reduce the gaps between them due to the: different gender-related impacts1; unwarranted                 impositions; implicit discriminations and favoritism as a result of the current taxation designs, policies or implementation,” says the report.

In spite of existing gender issues in the country that is consistently being downplayed, ignored, or continually addressed at the periphery of policy dialogue and decision-making, Wanyama admits that macroeconomic policy failures have continued to have a clear correlation to the degree of gender inequality.

“It is a wider problem, we are constantly engaging the likes of Treasury and KRA to have these issues looked into,” he says.

“Inequalities therefore emerge from the gender hierarchies associated with different societal roles and division of labor that offer more advantages in the distribution of resources an opportunities to one group over the other,” reads the report.

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