Following peaceful protests under the banner “Occupy Parliament,” Hon Kurian Kimani announced significant revisions to the proposed taxes outlined in the Finance Bill 2024.
Kenyans expressed their concern about the bill’s various taxes, believing they would worsen existing hardships. In response to this public outcry, the following changes were implemented:
Removed Taxes: The initial proposals for a 16% VAT increase on bread, excise duty on vegetable oil, VAT on sugar transportation, and a 2.5% motor vehicle tax have all been scrapped.
Mobile Money Transfer Fees Unchanged: The planned increase in mobile money transfer fees has also been withdrawn.
VAT and Levies Removed: The VAT on financial services and foreign exchange transactions has been eliminated, along with the Eco Levy on essential locally manufactured goods like sanitary towels, diapers, phones, computers, tires, and motorcycles.
Reduced Burden on Small Businesses: Farmers and small businesses with a turnover below Ksh 1 million are no longer required to comply with the Kenya Revenue Authority’s Electronic Transaction Invoicing Management System (ETIMS).
Protection for Local Farmers: To safeguard local producers, excise duty will only apply to imported table eggs, onions, and potatoes.
Alcohol Tax Based on Content: The excise duty on alcoholic beverages will now be based on their alcohol content, with higher concentrations attracting a higher tax. Previously, a flat rate was proposed based on volume, with beer below 6% alcohol and wine taxed at Sh22.50 per deciliter of pure alcohol, and spirits at Sh16 per deciliter.
Increased Pension Exemption: Finally, the exemption for pension contributions has been increased from Ksh 20,000 to Ksh 30,000 per month.
For Top News and Stories every day, Join our TELEGRAM channel today.
