Bread, auto, and environmental taxes are a few of the ones that were eliminated.
According to the Ruto team, the suggestions were withdrawn after Kenyans voiced objection to them during a public engagement exercise.
Major tax ideas that have caused a stir among Kenyans in recent weeks have been abandoned by the Kenya Kwanza Government.
Following a Tuesday parliamentary group meeting that President William Ruto hosted at State House in Nairobi, the news was made.
The Ruto team announced in a news conference held subsequent to the PG meeting that the ideas were withdrawn after Kenyans voiced opposition to them via a public involvement exercise.
Kuria Kimani, chair of the National Assembly Finance Committee, stated, “The exercise we conducted on public participation was not an exercise in futility.”
“We have agreed that we must protect Kenyans from increased cost of living.”
A motor vehicle tax, an eco-tax, and a bread tax are among those eliminated.
Vegetable oil no longer has an excise tax.
The 15% tax that was previously levied on the transfer of mobile service has been kept in place.
Additionally, the tax on sanitary pads and diapers made in the area has been removed.
It is important to note that imported completed goods are subject to the Eco Levy. Therefore, the Eco Levy will not apply to products made locally. Local production and assembly will increase Kenya’s manufacturing potential, provide employment, and preserve foreign exchange, according to Kuria.
From Sh5 million to Sh8 million is now the threshold for VAT registration.
As a result, many small firms won’t have to worry about registering for VAT.
“Responsibility for electronic invoicing ETIMS, recently introduced by KRA, has been receded from farmers and small businesses with a turnover of below Sh. 1 million,” Kuria stated.
He also mentioned that the request for avocado growers to provide eTims receipts has drawn criticism.
Kuria stated, “We have suggested that farmers and companies with yearly sales of less than Sh1 million be exempted from eTims registration.”
The electronic Tax Invoice Management System is referred to as eTIMS. It is a piece of software designed specifically for tax invoicing.
To safeguard local producers, an excise levy has been placed on imported potatoes, onions, and table eggs.
Alcoholic beverages will henceforth be subject to an alcohol content-based excise duty rather than a volume-based levy.
Excise duty is directly correlated with alcohol concentration. As a result, producers of alcohol are expected to produce cheaper, safer alcohol.
The monthly exemption for pension contributions would rise from Sh 20,000 to Sh 30,000.
Streets of Nairobi CBD echo with chants of “Ruto Must Go” as #RejectFinanceBill2024 protesters defy heavy police presence to peacefully march and voice their dissent.
