Kagwe pledge ends Sh45m tax dispute for HIV drugs

0
19

[ad_1]

Economy

Kagwe pledge ends Sh45m tax dispute for HIV drugs


mutahi-kagwe

Health Cabinet Secretary Mutahi Kagwe. FILE PHOTO | NMG

lynetigadwah_img

Summary

  • A Sh45.8 million tax demand for HIV and tuberculosis drugs was at the centre of a standoff with the US aid agency in a spat that threatened the lives of millions of patients
  • The drugs have been lying at the Mombasa port since January 18 after disagreements between the Kenyan government and the US Agency for International Development (USAid) on who should pay tax for the cargo.

A Sh45.8 million tax demand for HIV and tuberculosis drugs was at the centre of a standoff with the US aid agency in a spat that threatened the lives of millions of patients

The drugs have been lying at the Mombasa port since January 18 after disagreements between the Kenyan government and the US Agency for International Development (USAid) on who should pay tax for the cargo.

The Ministry of Health has now committed to pay for the Sh1.1 billion consignment ending the standoff that prompted rationing of the lifesaving HIV and tuberculosis medicines in public hospitals.

“The purpose of this letter is, therefore, to request you issue the Commissioner General —Kenya Revenue Authority (KRA) with an undertaking by this ministry to pay taxes and levies amounting Sh45.82 million,” said Health Cabinet secretary Mutahi Kagwe in a letter to the Treasury.

He also requested that Treasury directs the KRA to release the commodities as the ministry finalises the payment process.

The Treasury has since approved the request, ending weeks of acute shortage of the lifesaving drugs that hit people living with HIV/Aids.

[ad_2]

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here