Finance Bill 2024: List of Tax Proposals Removed completely

The Kenyan government has withdrawn several significant tax proposals from the 2024 Finance Bill after public backlash.

Notable among these is the removal of a 16% VAT on bread, which would have affected many households.

Also eliminated were taxes on the transportation of sugar, financial services, and foreign exchange transactions. The government also decided against imposing a 2.5% tax on motor vehicles.

Additionally, excise duty on vegetable oil and eco levies on locally produced goods such as sanitary products, diapers, and electronics have been dropped.

The bill also proposed making contributions to the Housing Fund and the Social Health Insurance Fund tax-deductible. This measure aims to provide some relief to taxpayers while still encouraging participation in these social programs.

President William Ruto’s administration has highlighted that these changes reflect the government’s responsiveness to the public’s concerns and its commitment to fostering economic growth without placing undue burden on citizens.

The amendments indicate a strategic shift in the government’s approach to tax legislation, focusing on creating a more balanced economic environment.

This includes maintaining public welfare and promoting sustainable economic policies that align with the needs and expectations of the Kenyan population. The Finance Bill 2024, with these revisions, will now proceed through the legislative process.