The proposed Finance Bill 2024 has stirred a wave of discontent among Kenyans and experts alike, who warn of its potential to exacerbate the country’s economic woes.
In a recent briefing session hosted by Deloitte Kenya to dissect the bill’s implications, speakers highlighted significant concerns regarding its impact on citizens already grappling with heightened taxes.
Fredrick Omondi, Tax and Legal Leader at Deloitte East Africa, underscored the detrimental effects of the proposed tax amendments, cautioning against further straining purchasing power and escalating business costs.
He emphasized the need for a balanced approach that prioritizes compliance enhancement and economic growth over burdening taxpayers with additional levies.
Gladys Makumi, Financial Advisory Leader at Deloitte East Africa, echoed these sentiments, expressing apprehension over the bill’s potential to dampen private consumption amidst inflation-induced salary constraints.
Peter Njenga, a Tax and Legal Senior Manager, highlighted the proposed changes in excise duty on alcoholic products and eco levies on essential items, foreseeing adverse consequences on affordability and business operations.
Additionally, the bill introduces Advance Pricing Agreements (APAs), aimed at providing certainty for Multinational Enterprises (MNEs) regarding transfer pricing with the Kenya Revenue Authority (KRA).
Doris Gichuru, a Tax and Legal Partner at Deloitte East Africa, lauded this provision for its potential to mitigate tax disputes if effectively implemented.
Published on May 9, 2024, the Finance Bill 2024 proposes amendments across various tax-related statutes and is currently under parliamentary review.
Despite President William Ruto’s insistence on increasing taxes for Kenya’s self-reliance, public dissent against the bill persists, with calls for MPs to prioritize the interests of taxpayers in the amendment process.
With the deadline for public comments set for May 28, 2024, the fate of the Finance Bill 2024 hangs in the balance, awaiting parliamentary approval and eventual enactment into law, potentially reshaping Kenya’s fiscal landscape.
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