The government revisits parts of the shelved Finance Bill, 2024, raising concerns about its commitment to tax reliefs. Initially, the State reintroduces popular proposals from the withdrawn Bill, but controversial provisions may follow. Shortly after President Ruto rejected the Finance Bill, Majority Leader Kimani Ichung’wah introduced new legislation. The Kenya Revenue Authority (Amendment) Bill, 2024, empowers the Treasury CS to waive penalties for late tax transfers if taxpayers fully pay the funds. This proposal was originally part of the rejected Finance Bill.
Treasury CS John Mbadi announced plans to revive some provisions, focusing on tax expenditures and amnesty programs. Mbadi claims these measures will benefit taxpayers, but controversial provisions might return, increasing living costs. President Ruto expressed his determination to reintroduce these tax measures, comparing his resolve to a parent’s persistence. He mentioned that rejecting the Finance Bill thwarted plans for Sh130 billion in development projects.
The Electric Mobility Association of Kenya opposes the reintroduction of taxes on electric vehicles, arguing it would slow adoption. The Finance Bill proposed a 16% VAT on electric motorcycles, batteries, and buses, and removed VAT exemptions on wind and solar equipment. Emak President Hesborn Mose warned these taxes would make EVs more expensive and hinder e-mobility progress.
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