Kenyans Have Until Monday to Submit Views On Finance Bill 2024

15 May 2024
Capital FM (Nairobi)
By Sharon Resian

Nairobi — The Departmental Committee on Finance and National Planning has invited the public and stakeholders to submit their written views on the Finance Bill 2024 by Monday, March 18, 2024, at 5 p.m.

In a statement on Wednesday, the committee stated that the Bill sponsored by MP for Molo Constituency and chair of the National Assembly Finance Committee, Kuria Kimani, was published on May 9, 2024, and was read for the first time on May 13, 2024.

It was submitted to the National Assembly by the Cabinet Secretary for the National Treasury and Economic Planning.

"The proposed legislation contains proposals relating to revenue-raising measures, including liability to and collection of taxes. The Bill also amends other pieces of legislation relating to fees, levies and management of public funds," read the statement.

Among the legislation the proposed law seeks to amend are the Income Tax Act (Cap. 470), the Value Added Tax Act (Cap. 476), the Excise Duty Act (Cap. 472), the Tax Procedures Act (Cap. 469B), and the Miscellaneous Fees and Levies Act (Cap. 469C).

The tax put forward in the new Finance Bill 2024 seeks to introduce an annual tax that will be paid during motor vehicle insurance cover acquisition.

Set at a minimum of Sh5,000 and a maximum of Sh100,000, the levy will be 2.5 percent of the vehicle's value.

It also proposes 16 percent VAT on bread, which will see the price of the commodity skyrocket.This will see Kenya's favorite breakfast meal rise by at least Sh10.

Currently, bread is VAT-zero-rated. The inclusion of 16 percent will raise the prices from 60 to 70.

The new proposals have suggested the rise of excise duty on fees for mobile money transfer services such as M-Pesa and money transfer charges in banks and Saccos to rise from 15 to 20 percent.

Furthermore, the cost of beer is set to decrease after the new bill proposed an excise duty of Sh142.44 per litre, down from Sh253, while the cost of stronger spirits and whiskey is set to rise as the excise duty is set to rise from Sh253 to Sh356.

The government says the new tax is designed to provide a steady revenue stream to support the government's ambitious development projects.

Read the original article on Capital FM.

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