NAIROBI, Kenya
Kenyans have been granted
relief after the government dropped a raft of controversial proposals contained
in the Finance Bill 2024 set to be tabled in the National Assembly Tuesday
afternoon.Popular activists Hanifa Adan and Njeri wa Migwi were among the several prominent faces who were arrested alongside many other Kenyans as the Occupy Parliament protests snaked around Nairobi's CBD.
Top on the list of the
proposals withdrawn following sustained public pressure is a plan to impose 16
percent Value Added Tax on bread, financial services and foreign exchange
transactions.
The announcement was made
following a meeting of members of parliament allied to the ruling Kenya Kwanza
coalition led by President William Ruto at State House Nairobi.
Here is a list of the changes
made to the Finance Bill 2024:
1. The proposed 16 per cent on bread has been dropped.
2. Excise duty on vegetable
oil removed.
3. Transfer of mobile services
is a key concern for many Kenyans hence no increase on transaction of mobile
phone transfer services. The status quo remains.
4. We proposed that statutory
deductions such as Housing Levy, SHIF to be tax deductible and hence allow what
is subjected to PAYE is an amount less than what was therebefore so more
disposable income.
5. Eco levy will only be
tangible to imported finished products. All locally manufactured items
including diapers and sanitary towels will not be subject to eco-levy.
6. VAT Threshold; increase
from Ksh.5 million to Ksh.8 million hence SMEs that have turnover of less than
Ksh.8 million don't have to register for VAT.
7. eTIMS - Small businesses
that have turnover of less than Ksh.1 million should be exempted from
eTIMS.
8. Eggs, onions, potatoes, -
proposed excise duty only on imported eggs, onions and potatoes hence locally
produced to be more marketable.
9. Fight against illicit brew
- change in excise duty from volume to alcohol content hence those producing
very high alcohol content will pay more excise duty.
10. To support pension
contributions: Increase amount allowable for Taxable contributions from
Ksh.20,000 to Ksh.30,000 monthly.
11. Money allocated for JSS -
hire all 46,000 JSS intern teachers for permanent and pensionable terms. In
addition to recruit another 20,000.
12. Motor Vehicle Tax - The
motor vehicle tax cannot be amended through Income Tax Act. Pegging it on
insurance would cripple the insurance business and hence the proposal has been
dropped.
13. Sugarcane Transportation:
Remove VAT on transportation of sugarcane from farms to the milling
factories.
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