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Parliament begins public debate on finance act

Tuesday, May 28th, 2024 09:49 | By
Chairman Committee for finance and national planning Kuria Kimani( with mic). PHOTO/ (@NAssemblyKE)/ X
Chairman Committee for finance and national planning Kuria Kimani( with mic). PHOTO/ (@NAssemblyKE)/ X.

Parliament has commenced public debates on the controversial finance bill that was tabled at the National Assembly on May 12, 2024, by the chair of the finance and national planning committee and Molo Member of Parliament (MP) Kuria Kimani.

In a statement on Tuesday, May 28, the National Assembly announced the start of public participation on the proposed bill that has elicited mixed reactions from various sectors of the economy.

"The Departmental Committee on Finance and National Planning is set to commence public hearings on the Finance Bill, 2024, today ( May 28, 2024)," the statement read.

The National Assembly also instructed that the window for submission of memoranda will close at 5 pm.

Those expected to appear and deliver their submissions before the finance committee are the Kenya Association of Manufacturers, Institute of Economic Affairs, Institute of Public Finance, Institute of Certified Public Accountants of Kenya (ICPAK) and Deloitte & Touche.

Finance bill woes

Kimani allayed fears by members of the public that the exercise will not be a formality but the committee will input their contributions while processing the bill.

The finance bill is set to take effect on July 1, 2024, after being passed by the National Assembly and senate houses.

The Bill proposes various changes to the Income Tax Act (ITA), the VAT Act, 2013 (VAT Act), the Excise Duty Act, the Tax Procedures Act, 2015 (TPA), and the Miscellaneous Fees and Levies Act among other non-tax statutes.

Chairman Committee for finance and national planning Kuria Kimani( with mic). PHOTO/ (@NAssemblyKE)/ X

Some of the controversial clauses in the bill include the motorvehicle circulation tax that will see all vehicle owners charged up to Ksh100,000 as a prerequisite before acquiring motorvehicle insurance.

The clause has been received with widespread uproar, with traders and public transport stakeholders voicing their dissent on the proposal.

Also in the tax bracket is the digital content monetization that if passed, will see social media personalities part with a fraction of their income in the form of taxes.

The Kenya Revenue Authority will also be able to subject donations made in kind or cash to tax obligations in the new bill.

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