Parliament’s committee on finance has proposed some amendments in the Finance Bill 2024 following uproar from the public and industries over the implications of the Bill.
- The Bill is expected to be tabled in parliament later on Tuesday afternoon with debate on it expected to kick-off on Wednesday morning.
- Addressing a press conference after Finance and National Planning Committee Chair Kuria Kimani said 16 percent VAT on bread has been dropped, the eco-levy will not target locally manufactured goods, and that there will be no increase on mobile money transfer charges.
- The committee’s proposals include VAT exemptions on “the issuing of credit and debit cards, foreign exchange transactions, sanitary towels and diapers and services of local film agents.”
Small and Medium Enterprises (SMEs) and farmers especially those with turnover less than KSh 1 million will be exempted from e-tims registration while VAT threshold has also been reviewed from KSh 5 million to KSh 8 million.
To protect poultry and onion farmers, the committee has proposed a review of the duty only on imported eggs, onions, and potatoes.
“To support the fight against illicit brews in the country, we have proposed a change in the excise duty to change it from volume to alcohol content. Therefore, those alcohol manufacturers that are producing alcohol with very high content will now be required to pay higher duty,” he said.
In the review, the committee is also proposing an increase in the amount allowable for tax exemption on pension contributions from KSh 20,000 to KSh 30,000 per month. “We have also been appraised of money allocated to junior secondary school to hire all the intern teachers into permanent and pensionable terms, this will be in addition to recruiting another 20,000 teachers.”
The committee noted that while it was necessary to look for money for road maintenance from motorists, who are heavy users of roads, it was not practical to enforce the motor vehicle tax due to its effect on the insurance industry and that it cannot be amended through income tax.
The announcement of the review comes amid tight security in Nairobi’s Central Business District on Tuesday as protestors engaged police officers in a running battle over the bill.
The ‘Occupy Parliament’ protests have been publicized as a strategy to influence and pressure members of parliament to vote against the bill and its proposed taxes which have been perceived as ‘punitive’.
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