Mbeere North MP Geoffrey Ruku has announced that the proposed Finance Bill 2024 will undergo a review, with particular attention given to contentious sections to mitigate any adverse impact on Kenyans. Speaking on Citizen TV, Ruku addressed concerns about the bill’s provisions to increase taxes on car owners, despite existing taxation on vehicles. He clarified that when the bill reaches parliament, amendments will be made to target only commercial vehicles and trucks for taxation, exempting personal cars.
“The motor vehicle tax will be reduced to motor vehicles (commercial vehicles and trucks) that are generating income,” Ruku said.
Responding to queries about the additional tax burden on vehicle owners, Ruku defended the government’s position, emphasizing that the bill is still a proposal subject to thorough scrutiny.
He emphasized that the administration aims to analyze the proposal’s merits and demerits, noting that similar taxation measures exist in other countries.
“It is just a proposal that has been put forward by our administration and we will be there to analyse the pros and cons. We are coming from the point where we are not the first country in the world to have these kinds of taxes,” Ruku further claimed.
The proposed bill includes a provision to impose a 2.5% tax on all motor vehicle owners, ranging from Ksh. 5000 to Ksh. 100,000 annually, to be collected through insurance companies. This proposal has sparked mixed reactions from Kenyans, with many criticizing the government for imposing excessive taxes on citizens.
