The National Assembly has initiated public discussions on the contentious finance bill, which was introduced 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 an announcement made on Tuesday, May 28, the National Assembly declared the commencement of public participation regarding the proposed bill, which has sparked diverse 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),” stated the announcement.
Additionally, the National Assembly outlined that the deadline for the submission of memoranda would be at 5 pm.
Various organizations, including the Kenya Association of Manufacturers, Institute of Economic Affairs, Institute of Public Finance, Institute of Certified Public Accountants of Kenya (ICPAK), and Deloitte & Touche, are expected to present their submissions before the finance committee.
Kimani assured the public that the process would not merely be a formality, emphasizing that the committee would consider and incorporate public contributions while processing the bill.
The finance bill is slated to come into effect on July 1, 2024, following its passage by both the National Assembly and the Senate.
The proposed bill includes amendments to several statutes, such as 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 others.
One contentious provision in the bill is the proposed motor vehicle circulation tax, which would require all vehicle owners to pay up to Ksh100,000 before obtaining motor vehicle insurance.
This clause has sparked widespread opposition, with traders and public transport stakeholders expressing their disapproval of the proposal.
Another controversial aspect is the inclusion of digital content monetization in the tax bracket, potentially subjecting social media personalities to taxation on a portion of their income.
Additionally, the bill allows the Kenya Revenue Authority to impose tax obligations on donations, whether in kind or cash. These provisions have stirred debate and raised concerns among various stakeholders.
