In Summary
- Finance Bill Ammendments
- Gov’t removes controversial tax proposals in Finance Bill 2024
- The announcement was made following a meeting of members of parliament allied to the ruling Kenya Kwanza coalition
A slight sign of relief for Kenyans after the government dropped a section of controversial proposals contained in the Finance Bill 2024 .
The announcement was made following a meeting of members of parliament allied to the Kenya Kwanza coalition led by President William Ruto at State House Nairobi.
READ also: Finance Bill 2024 Could Fuel Increase in Teenage Pregnancy, Experts Warn
Finance Bill amendments
Here is a list of the changes made to the Finance Bill 2024:
- Proposed 16% VAT on bread removed.
- Proposed VAT on transportation of sugar removed.
- VAT on financial services and foreign exchange transactions removed.
- No increase on mobile money transfer fees
- 2.5% Motor Vehicle Tax remove
- Excise duty on vegetable oil removed.
- Levies on the Housing Fund and Social Health Insurance will become income tax deductible.
- Locally manufactured products like sanitary towels, diapers, phones, computers, tyres, and motorcycles exempt from the Eco Levy
- VAT registration threshold increased from KSh5 million to KSh8 million, reducing the need for small businesses to register.
- Responsibility for electronic invoicing ETIMS by KRA removed for farmers and small businesses with turnover below Ksh. 1 millioN
- Excise duty imposed on imported table eggs, onions & potatoes to protect local farmers
- Excise duty on alcoholic beverages will be based on alcohol content, not volume; higher alcohol content will attract more duty
- Pension contributions exemption increased from Ksh. 20-30k
READ also: PBOs Pressure Government to Implement Kenyans’ Views on Finance Bill 2024/2025
Parliamentary Group meeting
President William Ruto on Tuesday June 18, 2024 chaired a United Democratic Alliance (UDA) Parliamentary Group meeting at State House, in Nairobi.
The main agenda of President Ruto’s meeting with Kenya Kwanza legislators was about Finance Bill 2024, which is expected to be tabled in parliament on Tuesday afternoon.
