Crucial tax changes you need to know as Finance Bill, 2022 becomes law
Just before the Members of Parliament went on an indefinite recess, ratified a number of changes to the Finance Act in Kenya and are set to have an impact on Kenyans both in a positive and negative way.
The Gladys Wanga-led Finance and National Planning Committee, amended the Finance Bill, 2022l to bring down Value Added Tax (VAT) on gas from 16% to eight percent.
This Bill became law after President Uhuru Kenyatta signed it into law on June 21, 2022.
There are a number of proposals in the Bill that were shot down by the legislatures who have gone on break for a campaign spree in readiness for the August 9, 2022, general election.
The legislators rejected the following;
-Exemption from excise duty on imported fertilised poultry eggs.
-A 10 percent increase in excise duty charged on motorcycles to Ksh.13,403.64 up from the current rate of Ksh12,185.6 per unit.
-Imposition of 10 percent excise duty on bottled or similarly packaged waters and other non-alcoholic beverages.
-The Treasury’s proposal to have anyone with tax disputes with the Kenya Revenue Authority (KRA) deposit 50 percent of the disputed amount before filing an appeal in the High Court.
-The proposal to increase excise duty on powdered beer (keg).
The National Assembly APPROVED the following:
-The reduction of taxes on basic commodities like maize, wheat and cassava flour.
-Reduction excise rate for fruit juices including grape must and vegetable juices, unfermented and not containing added spirit to Ksh13 a litre.
-Exclusion from excise duty for locally manufactured chocolate products- white chocolate, chocolate in blocks, slabs or bars.
-Excise duty on Capital Gains Tax (CGT) was retained at 15 percent.
-The increase in excise duty for wines from Ksh.202.20 to Ksh.229 per litre and duty for spirits with alcoholic percentage of more than six percent to Ksh.335.30 per litre from Ksh.278.70.
-The increase in excise duty on fees charged by digital lenders to a rate of 20 percent.
-Excise duty on the importation of cellular phone SIM cards was set at 10 percent.
-Raised excise duty on Jewellery to 15% from 10%. -Increased excise duty on fees charged on advertisements