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summarize all sections of the finance bill 2024

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The Finance Bill 2024 introduces several significant changes aimed at enhancing revenue collection, tax compliance, and overall economic growth in Kenya. Below is a summary of the key sections and proposed amendments:

Income Tax

Definition Amendments: Section 2 of the Income Tax Act is amended to refine definitions for clarity and compliance.
Corporate Tax Rate: The corporate tax rate for branches is reduced to 30% from the previous 37.5%, effective from the 2024 year of income.
Digital Economy Taxation: New provisions are introduced to tax the digitalized economy, ensuring that digital transactions are adequately captured and taxed.

Value Added Tax (VAT)

Removal of Exemptions: VAT exemptions in the tourism, manufacturing, and construction sectors are removed to broaden the tax base.
eTIMS Invoices: Amendments to Section 23 of the Tax Procedures Act mandate the issuance of electronic Tax Invoice Management System (eTIMS) invoices to enhance compliance and reduce tax evasion.

Excise Duty

Adjustments in Rates: The Bill proposes adjustments in excise duty rates on various goods and services to align with current economic conditions and revenue needs.

Tax Procedures Act

Enhanced Compliance Measures: Amendments are introduced to enhance tax compliance across various sectors, including mandatory electronic invoicing and stricter penalties for non-compliance.

Miscellaneous Provisions

Revenue Collection: Various amendments aimed at enhancing revenue collection mechanisms and closing loopholes in the existing tax framework.
Sector-Specific Changes: Specific changes targeting sectors such as agriculture, manufacturing, and digital services to ensure fair and comprehensive taxation.

Implementation Dates

Staggered Implementation: Different sections of the Bill have varied implementation dates, with some provisions taking effect on July 1, 2024, and others on January 1, 2025.

These changes reflect the government's efforts to streamline tax administration, enhance compliance, and ensure a fair and equitable tax system that supports economic growth and development.

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