List of Tax Proposals Scrapped From Finance Bill 2024

President William Ruto
President William Ruto. [Photo/@KIMANIICHUNGWAH/X]

The National Assembly’s Finance and Planning Committee Chairperson Kimani Kuria has announced that the government has dropped a number of tax proposals in the Finance Bill 2024.

They include;

  1. The proposed 16% VAT on bread has been dropped.

2. The increase in taxation on mobile phone transfers has been dropped. Also, no additional taxes on bank transfers.

3. All locally manufactured items, including diapers and sanitary pads, will not be subject to the Eco Levy.

4. Turnover Tax: VAT threshold to be increased from Ksh5 million to Ksh8 million. SMEs that have a turnover of less than Ksh8 million will not be required to register for VAT.

5. eTIMS: Businesses with a turnover of below Ksh1 million, including small-scale avocado farmers, will be exempted from eTIMS registration.

6. Local farmers: Excise duty will only be levied on imported table eggs, imported onions, and imported potatoes.

7. Alcohol: They’re now changing it from volume-based taxation to alcohol content-based. Alcohol manufacturers producing alcohol with very high content will be required to pay higher duty based on alcohol content.

8. Pension: They’re now increasing the amount allowable for tax exemption for pension contributions, from Ksh20,000 to Ksh30,000 per month.

9. JSS Teachers: All 46,000 JSS teachers will be hired on permanent and pensionable terms, in addition to recruiting another 20,000.

10. The Motor Vehicle Tax has also been dropped.

11. Sugarcane farmers: VAT on transporting sugarcane from the farms to the milling factories, has also been dropped.

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: