Tax proposals dropped from Finance Bill: Government removes controversial tax proposals from Finance Bill 2024

1. Tax proposals Finance Bill 2024
2. VAT exemption on bread
3. Excise duty vegetable oil

The Government of Kenya has made significant changes to the Finance Bill 2024, dropping controversial tax proposals. This includes the removal of 16% VAT on bread, excise duty on vegetable oil, VAT on transportation of sugar, and 2.5% Motor Vehicle Tax. Additionally, the Eco Levy on locally manufactured products has been eliminated. These adjustments will likely have a positive impact on consumers and businesses in Kenya, reducing the financial burden on essential goods and services. Stay tuned for more updates on how these changes will affect the economy and the daily lives of Kenyan citizens.

BREAKING: Government drops contentious tax proposals from the Finance Bill 2024.

16% VAT on bread removed

Excise duty on vegetable oil removed

VAT on transportation of sugar removed

2.5 per cent Motor Vehicle Tax removed

Eco Levy on locally manufactured products removed… pic.twitter.com/iHSmE8hlRl

— Citizen TV Kenya (@citizentvkenya) June 18, 2024

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In a surprising move, the Kenyan government has announced the removal of several contentious tax proposals from the Finance Bill 2024. This decision comes as a relief to many citizens who were concerned about the impact of these taxes on their daily lives. Among the key changes are the removal of the 16% VAT on bread, excise duty on vegetable oil, VAT on transportation of sugar, 2.5 per cent Motor Vehicle Tax, and Eco Levy on locally manufactured products.

The elimination of the 16% VAT on bread is particularly significant as bread is a staple food for many Kenyan households. The tax was seen as regressive, as it would have disproportionately affected low-income families who rely on bread as a primary source of nutrition. By removing this tax, the government has demonstrated a commitment to easing the financial burden on its citizens.

Similarly, the removal of excise duty on vegetable oil will come as a relief to consumers who use this essential cooking ingredient on a daily basis. Vegetable oil is a key component of many Kenyan dishes, and the tax would have led to an increase in prices, making it more difficult for families to afford this basic necessity. With this tax now eliminated, consumers can breathe a sigh of relief and continue to cook their favorite meals without added financial strain.

The decision to remove VAT on transportation of sugar is also a welcome development for both consumers and businesses in the sugar industry. This tax would have increased the cost of transporting sugar from farms to markets, leading to higher prices for consumers. By removing this tax, the government has ensured that sugar remains affordable and accessible to all Kenyan consumers.

Furthermore, the removal of the 2.5 per cent Motor Vehicle Tax will benefit car owners and potential buyers alike. This tax would have added to the already high cost of owning a vehicle in Kenya, making it more difficult for individuals and businesses to afford this mode of transportation. With this tax now abolished, car owners can enjoy some relief from the financial burden of vehicle ownership.

Finally, the elimination of the Eco Levy on locally manufactured products is a positive step towards supporting local industries and promoting sustainable practices. This tax would have increased the cost of locally made goods, making them less competitive in the market. By removing this levy, the government is encouraging the growth of local industries and ensuring that Kenyan products remain affordable for consumers.

Overall, the government’s decision to drop these contentious tax proposals is a testament to its commitment to supporting the well-being of its citizens and fostering economic growth. By listening to the concerns of the public and taking action to alleviate financial burdens, the government has shown that it is responsive to the needs of the people. This move is sure to be welcomed by many Kenyans who will benefit from the removal of these taxes.