Commitee tables Finance Bill 2024 Report before National Assembly

The Report of the Finance and National Planning Committee on the Finance Bill 2024 has been tabled before the National Assembly.

Second reading and debate on the Finance Bill 2024 will take place tomorrow Wednesday, June 19th 2024 during the morning and afternoon sessions as well as Thursday, June 20th 2024.

The Report was tabled by the Chairperson of the Finance and National Planning Committee Kuria Kimani, who is also the Member of Parliament for Molo.

Earlier on Tuesday in a press briefing, Kenya Kwanza Parliamentary Group chaired by President William Ruto disclosed that they had listened to concerns raised by Kenyans on the new tax proposals.

They also confirmed that a majority of the contentious issues in the Finance Bill 2024 had been withdrawn.

“We take this opportunity to tell the country that we have listened to you. We have heard you and the committee has briefed the Parliamentary Group on the proposed changes that capture many of the issues that were raised by stakeholders during public participation, ansd we have agreed on all with the Executive under the able leadership of the President,” Kimani Ichung’wah, National Assembly Majority Leader said.

Among other changes, the ruling party announced that 16 percent VAT on bread has been removed and the VAT on the transportation of sugar has also been removed. At the same time, the party confirmed that VAT on financial services and foreign exchange transactions has also been removed.

National Assembly Finance Committee Chairperson Kuria Kimani further disclosed that there will be no increase on mobile money transfers.

He said the contentious issue of 2.5 percent Motor Vehicle Tax that had been proposed has also been removed as well as the excise duty on vegetable oil.

“It is crucial to point out that Eco Levy is being levied on imported finished products. Locally manufactured products will, therefore, not attract the Eco Levy. Locally assembly and manufacturing will help boost Kenya’s manufacturing capacity, create jobs, and save foreign exchange,” added Kuria Kimani.

According to Kimani, “Locally manufactured products, including sanitary towels, diapers, phones, computers, tyres, and motorcycles, will not attract the Eco Levy.”

The electronic invoicing ETIMS, recently introduced by the Kenya Revenue Authority, has been rescinded from farmers and small businesses with a turnover of below KSh1 million.

The Finance Bill has also imposed excise duty on imported table eggs, onions and potatoes to protect local farmers.

In the Bill, excise duty on alcoholic beverages will now be taxed based on alcohol content and not volume.

Additionally, pension contributions exemption will increase from KSh20,000 per month to KSh30,000.