Tax proposals will claw back gains in climate change fight

President William Ruto alights from an electric car at the KICC during the Youth Africa Climate Change Summit. [PCS, Standard]

In contrast to previous years where the emphasis was on raising additional revenue from the existing tax base, this year's Finance Bill has included previously untouched sectors.

One proposal under consideration is the introduction of a motor vehicle tax of 2.5 percent of the vehicle value at the time of insurance coverage acquisition. This tax is to be capped at a minimum of Sh5,000 and a maximum of Sh100,000.