New recommendations following the public participation exercise and the new report tabled in parliament for debate.
Following the public participation exercise, the Finance and National Planning Committee had on 18th June 2024 tabled a report detailing revised proposals on the Finance Bill 2024.
Under this report, critical changes have been made over contentious clauses previously proposed. Some of these changes include;
- Removal of the proposed 2.5% Motor Vehicle Tax.
- The proposal of VAT on bread dropped hence bread will continue to be exempt.
- It has been recommended that contributions made on the Affordable Housing Levy and the Social Health Insurance Fund (SHIF) will now be allowable expenses meaning that this expense will be deducted when calculating PAYE.
- The VAT threshold increased to Ksh. 8 Million from the current Ksh. 5 Million turnover per year.
- E-Tims compliance for traders (farmers and SMEs) with a turnover of less than Ksh. 1 million vacated.
- There will be no increase in excise duty chargeable on money transfer services.
- Removal of VAT on financial services.
- The eco levy will only be charged on imported finished products of the categories specified in the bill including imported diapers, smartphones, microphones, telephone cables, etc. Locally manufactured products will therefore not be subjected to Eco Levy.
- Pension benefits of up to Ksh. 30,000 p.m will be exempt.
- Removal of Excise duty on vegetable oil.
- The proposal to exempt reimbursements to public officers dropped.
- Agricultural inputs and inputs for manufacturing medical suppliers will be exempt.
- VAT on sugarcane transportation removed.
- The proposal to allow personal data disclosure to KRA dropped.
