Ask a lawyer:
what are the controversial terms in the finance bill 2024?
The Finance Bill 2024 in Kenya has sparked significant controversy and public outcry due to several proposed tax measures and amendments. Here are some of the key contentious elements:
Introduction of New Taxes:
The bill proposed a 16% Value Added Tax (VAT) on essential items such as bread, which was met with strong opposition from the public. This tax was eventually scrapped following protests.
Other new taxes included levies on motor vehicles and other goods, which were seen as burdensome to the average Kenyan.
Sources:
Changes to Income Tax:
The bill proposed amendments to the Income Tax Act, including the deletion of certain definitions and provisions. These changes were perceived as complex and potentially increasing the tax burden on individuals and businesses.
Sources:
Withholding Tax on Rental Income:
The bill sought to impose withholding tax on rental income, requiring all persons who receive rental income on behalf of others to withhold tax. This measure was seen as an additional administrative burden and a potential increase in rental costs.
Sources:
Public Protests and Government Response:
The introduction of these taxes led to widespread protests across the country, with demonstrators clashing with police. The government was forced to reconsider and scrap some of the proposed taxes due to the public backlash.
Sources:
These elements highlight the significant public discontent and the challenges faced by the government in balancing fiscal policy with public acceptance. The Finance Bill 2024 remains a hot topic in Kenya, reflecting broader concerns about economic management and social equity.
Answered by mwakili.com