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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)
Definition Amendments: The Bill proposes amendments 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.
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 collection.
Excise Duty Act
Adjustments in Excise Duty: The Bill includes various adjustments to excise duties on goods and services to reflect changes in the market and consumption patterns.
Tax Procedures Act, 2015 (TPA)
Procedural Changes: Amendments to the Tax Procedures Act are proposed to streamline tax administration and enhance compliance. This includes changes in filing procedures and penalties for non-compliance.
Implementation Dates
Staggered Implementation: Different sections of the Bill have different implementation dates, with some sections taking effect on July 1, 2024.
Additional Provisions
Revenue Mobilization: The government will scale up efforts to mobilize more revenue through various Ministries, Departments, and Agencies (MDAs).
Public Participation: The Bill has been subject to public participation, and some proposals have raised concerns among stakeholders, leading to recommendations for adjustments.
Key Concerns and Recommendations
Stakeholder Feedback: Various stakeholders have raised concerns about the potential impact of the proposed changes, particularly the removal of VAT exemptions and the adjustments in excise duties. Recommendations have been made to reconsider some of these proposals to mitigate adverse effects on the economy.
Summary of Key Changes
Income Tax: Amendments to definitions and reduction in corporate tax rate for branches.
VAT: Removal of exemptions in key sectors.
Excise Duty: Adjustments to reflect market changes.
Tax Procedures: Streamlining of tax administration and compliance measures.
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Answered by mwakili.com