The National Treasury is preparing the Tax Laws (Amendment) Bill 2024, which is John Mbadi’s first task as Cabinet Secretary.
Mbadi has indicated that he is going after the Kes 396.0 billion annual tax expenditure. He specifically wants to rationalise the VAT-zero rating.
This is quite consistent with the June budget speech, where there is an indication of plans for an overhaul of the exemption and zero rating schedules of the VAT Act. This promises to be interesting.
He wants the 2023–24 tax amnesty program extended.
This was a proposal in Finance Bill 2024 and the Treasury, and the goal was to unlock a further KES 30.0 billion in 2024/25 through an extension to June 2025. We should expect amendments to the Tax Procedures Act.
It’s crucial to keep in mind that people have already witnessed attempts to salvage other proposals included in Finance Bill 2024.
The Kenya Revenue Authority (Amendment) No. 2 Bill of 2024 was tabled by the Majority Leader on August 5, 2024.
Important proposed amendments:
Mps are amending Sec. 13 of the parent Act to specify that the Commissioner General will appoint Deputy Commissioners.
Import: This proposal was part of the Finance Bill 2024 post-3rd Reading Amendments, and its inclusion in the Kenya Revenue Authority (Amendment) No. 2 Bill of 2024 essentially salvages what was lost with the collapse of Finance Bill 2024.
When full funds are sent to the Central Bank, Sec. 15A of the parent Act is changed to include a new subsection that says the CS can waive the penalty under Subsection 3 in whole or in part.
Import: This is another attempt to restore the provisions of Finance Bill 2024, which aimed to undo the reduction in the CS’s authority to waive penalties and interest under the Finance Act 2023.
