Nairobi — Treasury Cabinet Secretary (CS) John Mbadi has announced plans to reintroduce key provisions from the suspended Finance Bill 2024 through a newly proposed Tax Procedures (Amendment) Bill, 2024.
The bill, published in the latest Kenya Gazette Supplement No. 165, is set to be introduced to the National Assembly with the aim of reinstating some of the contentious measures that were previously put on hold.
The proposed bill includes several critical amendments to the Tax Procedures Act, aimed at improving tax collection and administration.
Notably, the bill seeks to extend the tax amnesty deadline, which lapsed on June 30, 2024, to June 30, 2025.
This extension is intended to provide taxpayers with additional time to settle their outstanding tax obligations without facing penalties or interest.
Another significant provision in the bill is the introduction of a new section, 37F, which allows for relief in cases where there is doubt or difficulty in recovering unpaid taxes.
Under this provision, the Commissioner of Taxes may refer cases to the Cabinet Secretary for consideration and possible approval of tax relief, either in full or in part.
This measure is designed to address situations where tax recovery is deemed impractical or inequitable, providing a mechanism for alleviating taxpayer burdens.
"Clause 3 of the Bill is intended to re-enact the provision on relief because of doubt or difficulty in recovery of taxes. The provision allows the Cabinet Secretary to allow a relief as determined by the Commissioner. Further, the provision requires gazettement by the Cabinet Secretary of any approved reliefs and tabling of the same to Parliament," read the amendment bill in part.
In addition to these amendments, the bill proposes changes to the computation of time for lodging tax objections, appeals, and other related actions.
The proposed amendments would exclude Saturdays, Sundays, and public holidays from the calculation of time limits, potentially providing taxpayers with more leeway in meeting deadlines for filing and payment.
The reintroduction of these provisions is expected to face scrutiny from members of Parliament and the public, given the controversy surrounding the original Finance Bill 2024.
However, Treasury officials argue that the amendments are necessary to streamline tax administration and ensure the government's ability to meet its revenue targets.
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The bill also contains a clause that mandates the Cabinet Secretary to publish notices of approved tax reliefs and to present them before the National Assembly.
This provision is intended to enhance transparency and allow Parliament to exercise oversight over the discretionary powers granted to the Cabinet Secretary.
President William Ruto had in June dropped the contentious bill following a nationwide protest by the Gen-Zs.
As the bill moves forward, it is likely to spark renewed discussions on the balance between effective tax administration and the need to ensure fairness and equity in the tax system.
The National Assembly is expected to debate the bill in the coming weeks, with potential implications for the broader economic landscape in Kenya.
