List of key tax proposals in Finance Bill 2024 dropped after State House meeting
3 min read
Motor vehicle tax, excise levy on edible oil, and VAT on bread are among the proposals dropped in the Finance Bill 2024
Motor vehicle tax, excise levy on edible oil, and VAT on bread are among the proposals dropped in the Finance Bill 2024
The government has dropped a raft of controversial proposals contained in the Finance Bill 2024 set to be tabled in the National Assembly on Tuesday.
Addressing the press at State House, Nairobi, on Tuesday, June 18, after a Kenya Kwanza Parliamentary Group meeting, the Molo MP intimated that the move was made in order to protect Kenyans from the increased cost of living.
The Chairman of the National Assembly Committee on Finance and Planning, Kimani Kuria disclosed that the proposed 16% value-added tax (VAT) on bread in the Finance Bill 2024 has been dropped.
“We are all in agreement that there are two things we must do. One of them is to protect Kenyans from from increased cost of living and therefore the proposed 16 percent VAT on bread has been dropped,” Kuria stated.
List of tax proposals in the Finance Bill 2024 dropped
The proposed 16 percent on bread has been dropped.
Excise duty on vegetable oil removed.
Transfer of mobile services is a key concern for many Kenyans hence no increase on transactions of mobile phone transfer services. The status quo remains.
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 there before so more disposable income.
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.
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.
eTIMS – Small businesses that have turnover of less than Ksh.1 million should be exempted from eTIMS.
Wife of police officer who shot Magistrate Kivuti was brought to court on life support – Nelson Havi
Senior police officer attempts suicide after losing pistol in Nairobi
Female student who went missing while on her way to school found dead in a forest
Landlords warn of rent increase by 25% over Finance Bill 2024
Government announces new date for university funding application
It is time for Mt Kenya to lead anti-government protests; Kalonzo
Eggs, onions, potatoes, – proposed excise duty only on imported eggs, onions and potatoes hence locally produced to be more marketable.
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.
To support pension contributions: Increase the amount allowable for Taxable contributions from Ksh.20,000 to Ksh.30,000 monthly.
Money allocated for JSS – hire all 46,000 JSS intern teachers for permanent and pensionable terms. In addition to recruiting another 20,000.
Motor Vehicle Tax – The motor vehicle tax cannot be amended through the Income Tax Act. Pegging it on insurance would cripple the insurance business and hence the proposal has been dropped.
Sugarcane Transportation: Remove VAT on the transportation of sugarcane from farms to the milling factories.
Also read,
Police ban ‘Occupy Parliament’ protests
UDA reveals plan to reprimand DP Gachagua during Ruto State House meeting
U.S. to host a major military event in Kenya non-Nato ally designation
House Chief of Staff drums support for Finance Bill 2024
Police meet ahead of ‘Occupy Parliament’ protests’
Suspects to be barred from wearing masks and hoodies to conceal their faces while in court
Follow us
