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summarize all sections of the finance bill 2024
The Finance Bill 2024 in Kenya proposes several significant changes across various tax laws and sectors. Here is a detailed summary of the key sections:
Income Tax Act (ITA)
Amendments to Definitions: The bill proposes changes to the definitions within the Income Tax Act to align with current economic realities.
Corporate Tax Rate: The corporate tax rate for branches is proposed to be reduced to 30% starting from the 2024 year of income.
Taxation of Digital Services: New provisions are introduced to tax income derived from digital services, reflecting the growing digital economy.
Value Added Tax (VAT) Act, 2013
Removal of Exemptions: The bill proposes the removal of VAT exemptions in key sectors such as tourism, manufacturing, and construction. This aims to broaden the tax base and increase revenue.
Standard Rate Adjustments: Adjustments to the standard VAT rate are proposed to ensure consistency and fairness in the application of VAT across different goods and services.
Excise Duty Act
New Excise Duties: Introduction of new excise duties on various products, including luxury goods and non-essential items, to boost government revenue.
Adjustments to Existing Duties: Revisions to the rates of existing excise duties to reflect inflation and changes in consumption patterns.
Tax Procedures Act, 2015 (TPA)
Compliance Measures: Enhanced measures to ensure compliance with tax laws, including stricter penalties for non-compliance and evasion.
Simplification of Procedures: Efforts to simplify tax procedures to make it easier for taxpayers to comply and for the Kenya Revenue Authority (KRA) to administer.
Other Key Provisions
Implementation Dates: Various sections of the bill have different implementation dates, with some provisions taking effect from July 1, 2024.
Revenue Mobilization: The government will scale up efforts to mobilize more revenue through improved efficiency in tax collection and administration.
Public and Parliamentary Response
Protests and Recommendations: There have been public protests against some of the proposed taxes, leading to recommendations from a parliamentary panel to scrap certain new taxes.
Conclusion
The Finance Bill 2024 aims to enhance revenue collection, broaden the tax base, and ensure fairness in the tax system. However, it has faced opposition from various stakeholders, necessitating further discussions and possible amendments.
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Answered by mwakili.com