National Treasury and Economic Cabinet Secretary John Mbadi has clarified plans to reintroduce the Eco Levy, a tax previously rejected by a section of Kenyans in the dropped 2024 Finance Bill.
Speaking in an interview on August 22, Mbadi stated that the levy was not part of the clauses that will be brought back to parliament for consideration.
“Eco levy is not one of the things that we are considering bringing back. We are not bringing back Finance Bill 2024; it is buried and withdrawn. There were many clauses in that Bill that were rejected by Kenyans hence have no space under my regime. I have made it very clear to the President,” Mbadi said.
Mbadi further defended his comment on the levy, noting that it was misreported and that he was looking to understand why multinationals are complaining about it.
“I only asked a question because Emmanuel was asking me that Eco levy is contentious, he actually used the word that multinationals are complaining, so I asked, why are they complaining? Because I wanted to understand why they have a problem with eco levy,” he added.
Additionally, the CS reiterated his stance on the clause and noted that it would not be reintroduced under his reign as it was one of the clauses that was opposed by Kenyans.
“You know there are people who have argued that Eco Levy is desirable or needs to be brought because of environmental issues. So, I just asked a question, I didn’t say it is one of the clauses that are considered.”
“But let me be very clear and categorical because I don’t want to appear like I am ambiguous on these things. First, we are not bringing back Finance Bill 2024, that should go out very clearly, it’s dead, it’s buried, it’s withdrawn,” Mbadi confirmed.
Also Read: John Mbadi Explains Connection Between Ruto’s Bottom Up and ODM Manifesto
Mbadi Speaks on Excise Duty on Sugar
Despite his stance on the Finance Bill 2024, Mbadi weighed in on some of the bills that in his opinion were progressive.
He gave an example of the excise duty on imported sugar which is set to increase from Ksh5 to Ksh.7.5 per kg if approved.
Mbadi argued that the move will be a boost and a protective measure to the sugar industry in Kenya that could possibly prevent the collapse of the sugar milling companies.
“There were provisions in the Finance Bill 2024 that were progressive. For instance, why would one reject amendment to increase excise duty on imported sugar from Ksh5 to Ksh.7.5 per kg to protect our sugar industry?” he posed.
The CS similarly emphasized that any initiative to support and promote the industry falls under the government’s authority, thereby creating more jobs.
Also Read: CS Mbadi Reveals Sections of Finance Bill 2024 to Return in New Tax Proposals
Taxes to be Reintroduced
This came after the CS disclosed that parts of the Finance Bill 2024 will be included in the new Tax Amendment Bill.
In a TV interview, Mbadi revealed that the government will reintroduce 49 clauses of the Finance Bill in its new revenue-raising proposals as it seeks to collect Ksh150 billion more to cover the deficit caused by the withdrawal of the Finance Bill 2024.
“There are about 49 [clauses]; some don’t even have financial implications; some just align the laws. The levy will target those areas that would not affect the common mwananchi. Sensitive areas, like what was widely talked about, such as sanitary pads—those we can’t touch because Kenyans have spoken,” Mbadi said.
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