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Summarise the finance bill 2024

The Finance Bill 2024 in Kenya proposes several significant changes aimed at reforming the tax system and enhancing revenue collection. Here are the key highlights:

Excise Duty

  • Financial and Telecom Services: The excise duty on financial and telecom services will remain at 15% for money transfer services.

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    • LinkedIn

Retirement Funds

  • Registration Requirement: The bill seeks to scrap the requirement that individual retirement funds, pension funds, and provident funds must be registered with the Kenya Revenue Authority (KRA).

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Motor Vehicle Tax

  • New Tax Introduction: A motor vehicle tax set at 2.5% is proposed to be introduced.

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Global Minimum Tax

  • Pillar Two Implementation: The bill includes the implementation of the Pillar Two global minimum tax, which is part of the OECD's global tax reform efforts.

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Income Tax, VAT, and Excise Duty

  • Amendments: The bill proposes several changes to Income Tax, Value Added Tax (VAT), and Excise Duty to streamline and enhance the tax collection process.

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Overall Tax System Reform

  • Comprehensive Changes: The Kenyan government aims to reform the tax system comprehensively through various proposals in the Finance Bill 2024.

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These proposed changes reflect the government's efforts to enhance fiscal consolidation and improve the efficiency of tax administration in Kenya.

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Answered by mwakili.com