By Tajeu Shadrack Nkapapa
Kenyans have received a reprieve as the government has dropped several contentious measures included in the Finance Bill 2024, which is scheduled for presentation in the National Assembly on Tuesday afternoon.
Among the most significant proposals withdrawn, in response to continuous public opposition, is the plan to impose a 16 percent Value Added Tax on bread, financial services, and foreign exchange transactions.
The announcement was made following a Kenya Kwanza Parliamentary Group meeting at State House, Nairobi led by President William Ruto.
“We take this opportunity to tell the country that we have listened to you. We have heard you and the committee has briefed the Parliamentary Group on the proposed changes that they have proposed to the Finance Bill 2024/2025 that capture many issues that stakeholders raised during the public participation,” Majority leader Hon. Ichung’wa said.
“The proposed 16% VAT on bread has been dropped. To support on reducing the cost of living, we are doing something about vegetable oil so that we do not make it expensive for Kenyans,” Hon. Kuria Kimani said.
“Transfer of mobile services is a key concern to many Kenyans we have therefore proposed that we do not have any increased taxation on mobile phone transfer,” he added.
In response to concerns about the cost of living, the government also removed the excise duty on vegetable oil and proposed no increase in taxation on mobile phone transfers.
Several other changes were made to the Finance Bill, including an increase in the VAT registration threshold and the imposition of excise duty on imported table eggs, onions, and potatoes to protect local farmers.
The government also revised the basis for calculating excise duty on alcoholic beverages to be based on alcohol content rather than volume.
These changes reflect the government’s commitment to addressing the concerns raised by stakeholders during public participation.