Finance Bill 2024: Major tax proposals dropped

National Assembly Finance Committee Chair Kuria Kimani addressing the media on Tuesday, June 18, 2024. [Screengrab]

The government has reversed several tax proposals in the Finance Bill 2024, citing the need to alleviate the financial burden on Kenyans after considering feedback from public participation meetings.

Speaking at State House Nairobi following a United Democratic Alliance (UDA) Parliamentary Group meeting chaired by President William Ruto, National Assembly Finance Committee chair Kimani Kuria announced that the changes were made after thorough deliberation and public outcry.

Among the proposals dropped are taxes on bread, locally manufactured diapers and sanitary pads, motor vehicles, and eco-tax. However, the tax on the transfer of mobile services remains at 15 percent.

“The public participation exercise was not an exercise in futility,” Kimani stated.

Motor vehicle owners can now breathe a sigh of relief as the proposed 2.5 percent annual tax has been scrapped.

"This move is also aimed at easing the burden of the rising cost of living and is in the best interest of Kenyans, following various meetings where public views were collected," he added.

The Committee is now expected to present a report to Parliament that excludes the controversial motor vehicle circulation tax.