The National Assembly Finance and National Planning Committee is considering amending the Finance Bill 2024 by removing several critical tax proposals.
These amendments include the removal of controversial clauses such as the proposed taxes on motor vehicles, money transfers and Internet, the eco levy tax and excise duty on bread and oil.
The committee is set to present the report to Parliament on Tuesday, June 18 after a two-week consultation with the public,
According to reports, these changes were made in response to public feedback, which rejected the contentious clauses, labeling them as punitive.
The committee noted that motor vehicle tax had also been deemed inappropriate, and the government may consider resorting to the road maintenance tax as an alternative.
Proposed Taxes on the Bill
The Finance Bill 2024 proposes the introduction of an annual motor vehicle tax at the rate of 2.5% of the value of the vehicle subject to minimum amount of Ksh 5,000 per annum.
The new proposals have also suggested the rise of excise duty on fees for mobile money transfer services such as M-Pesa and money transfer charges in banks and Saccos.
It seeks to impose an additional five percent excise duty on the money transfer services from the current 15 per cent to 20 per cent.
Further, the Bill seeks to amend the Value Added Tax Act (Cap.476) to change the supply of importation of various goods, including gluten bread, and unleavened bread, from exempt supplies to standard Rate VAT.
Also Read: Online Activism Reaches New Level as Kenyans Start Plan to Block Finance Bill
National Treasury proposed 16 per cent VAT on both unleavened and leavened bread which had earlier been exempted from taxation.
The Eco Levy, a proposal under the Miscellaneous Fees and Levies Act (MFLA) aims at charging manufacturers and importers whose goods affect the environment.
The selected goods are specified in the proposed Fourth Schedule of the Bill.
Those mainly targeted are manufacturers and importers of technology products (i.e. smartphones), telecommunication and internet equipment, personal computing devices, automatic data processing machines and units such as servers, cameras and radio and television broadcast apparatus.
Kenyans Urges MPs to Vote Against the Finance Bill 2024
Kenyans on social media ignited a fresh call to action against the contentious Finance Bill 2024 in a campaign dubbed “Occupy Parliament”.
Majority of Kenyans will be holding vigil outside the parliamentary building in an attempt to persuade MPs to vote against the bill on Tuesday, June 18, beginning 12:00 pm until the voting ends.
Also Read: Ruto Gives MPs Orders on Finance Bill 2024
According to activist Boniface Mwangi, who is leading the action, the move is a protest against the hefty taxes and the burden the bill will subject Kenyans to.
At the same time, participants were asked to carry placards, a handkerchief and a bottle of water. The dress code for the vigil is black.
Earlier, insiders of the movement compiled personal mobile numbers of several MPs and shared them with the public to send messages to their legislators and pressure them to reject the contentious bill.
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