Reprieve for farmers, small traders as proposal to file eTims invoices is dropped

Demonstrations over Finance Bill proposals

Kenya Kwanza MPs have succumbed to public pressure from Kenyans and dropped punitive taxes imposed on proposed Finance Bill 2024.

Kenya Kwanza Parliamentary Group (PG) attended a meeting chaired by President William Ruto and his deputy Rigathi Gachagua were it was agreed National Assembly’s Finance Committee to drop some of the proposals.

They proposed the threshold for VAT registration to be increased from KSh5 million to KSh8 million. This therefore means that many small businesses will no longer need to register for VAT.

Responsibility for electronic invoicing ETIMS, recently introduced by KRA, has been receded from farmers and small businesses with a turnover of below KSh1 million, farmers and mama mboga will now not register for ETIMS.

Excise duty imposed on imported table eggs, onions and potatoes has been removed to protect local farmers, only imported ones are taxed.


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Locally manufactured products will not attract the Eco Levy. Locally assembly and manufacturing will help boost Kenya’s manufacturing capacity, create jobs and save foreign exchange.

Consequently, locally manufactured products, including sanitary towels, diapers, phones, computers, tyres and motor cycles, will not attract the Eco Levy.

The legislatures also proposed removal of 16 per cent VAT on bread, VAT on transportation of sugar, VAT on financial services and foreign exchange transactions, there will be no increase on mobile money transfer.

They also proposed removal of 2.5 per cent Motor Vehicle Tax and excise duty on vegetable oil.

Pension contributions exemption to increase from KSh20,000 per month to KSh30,000.

Excise duty on alcoholic beverages will now be taxed on the basis of alcohol content and not volume. The higher the alcohol content the more excise duty it will attract. Consequently, alcohol manufacturers are expected to make safer and cheaper alcohol.

The PG was also informed that adequate funds -KSh18 billion – have been provided for the employment of all 46,000 Junior Secondary teachers who are on internship.

Funds have also been provided to hire 20,000 interns next month. The policy is now to transition teachers from internship to permanent and pensionable terms

The lawmakers begin debate on the Finance Bill 2024 on Tuesday;, Kenyans had taken to the streets protesting against the Finance Bill.

By Obegi Malack

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