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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. Here is a detailed summary of the key sections:
Income Tax Act (ITA)
Definition Amendments: The bill amends several definitions within the ITA to align with current economic and legal contexts.
Corporate Tax Rate: The corporate tax rate for branches is proposed to be reduced to 30% from the previous 37.5%, effective 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 goods, including luxury items and non-essential products, to discourage consumption and generate additional revenue.
Adjustments to Existing Duties: Revisions to existing excise duties to reflect inflation and changes in consumer behavior.
Tax Procedures Act, 2015 (TPA)
Compliance Measures: Enhanced measures to ensure compliance, including stricter penalties for non-compliance and evasion.
Simplification of Procedures: Streamlining of tax procedures to make it easier for taxpayers to comply with their obligations.
Implementation Dates
Staggered Implementation: Different sections of the bill have varied implementation dates, with some provisions taking effect on July 1, 2024, and others at later dates to allow for a smooth transition.
Additional Provisions
Revenue Mobilization: The government will scale up efforts to mobilize more revenue through various ministries, departments, and agencies.
Equitable Access to Services: Ensuring that all parts of the Republic have access to services as mandated by the Constitution.
These changes are aimed at enhancing revenue collection, promoting fairness in the tax system, and aligning Kenya's tax laws with international best practices.
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Answered by mwakili.com