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summarize all sections of the finance bill 2024

The Finance Bill, 2024, introduced by the Kenyan government, proposes several significant changes to the tax framework. Here is a summary of the key sections:

Income Tax

  • Repeal of Exemptions: The Bill proposes to repeal the income tax exemption on interest income earned from all listed bonds, notes, or other similar securities.

  • Non-Resident Suppliers: Non-resident suppliers of goods will likely face increased costs due to withholding tax deductions in Kenya, which may not be creditable in their home countries.

Value Added Tax (VAT)

  • VAT Adjustments: The Bill includes various adjustments to VAT, aiming to streamline and enhance the efficiency of tax collection.

Excise Duty

  • New Excise Duties: Introduction of new excise duties on certain goods and services, which will impact their pricing and consumption.

Customs Duty

  • Customs Duty Revisions: Amendments to customs duties to align with regional and international trade agreements, promoting fair trade practices.

Miscellaneous Provisions

  • Implementation Dates: Various sections of the Bill will come into effect on different dates, with some provisions starting as early as July 1, 2024.

  • Policy Measures: The Bill includes policy measures to support private sector growth, service sectors, and agriculture, aiming for a projected economic growth of 5.5% for 2023 and 2024.

Administrative Changes

  • Tax Administration: Enhancements in tax administration to improve compliance and reduce evasion, including the use of technology and data analytics.

Impact on Different Sectors

  • Sectoral Impact: The Bill's provisions are expected to have varying impacts across different sectors, with some benefiting from tax incentives while others may face increased tax burdens.

Government Revenue

  • Revenue Mobilization: The Bill is part of broader efforts to mobilize more non-tax revenue through various Ministries, Departments, and Agencies (MDAs).

Strategic Goals

  • Economic Strategy: Aligning with the government's strategic goals, the Bill aims to create a conducive environment for investment and economic growth.

Sources:

  • Global Tax News

  • KPMG Kenya Finance Bill 2024 Analysis

  • Bowmans Law

  • Parliament of Kenya

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