Rejected Finance Bill is back as President RUTO assents to the new tax proposals into law

Thursday, December 12, 2024 - President William Ruto has signed seven Bills into law at State House, Nairobi.

The Bills include the Tax Laws (Amendment) Bill (National Assembly Bill No. 47 Of 2024), the Tax Procedures (Amendment) (No. 2) Bill (National Assembly Bill No. 46 Of 2024), and the Business Laws (Amendment) Bill (National Assembly Bill No. 49 Of 2024).

Others are the Statutory Instruments (Amendment) Bill, Ethics and Anti-Corruption Commission (Amendment) Bill and the Kenya Roads (Amendment) Bill.

Additionally, Ruto also assented to the Kenya Revenue Authority (Amendment) Bill.

The most notable Bill is the Tax Laws (Amendment) Bill (National Assembly Bill No. 47 of 2024) which was introduced to amend key tax statutes, including the Income Tax Act, Value Added Tax Act, and Excise Duty Act. 

It aims to enhance tax compliance and address fiscal challenges by reintroducing beneficial provisions from the withdrawn Finance Bill 2024. 

Key proposals include increasing non-taxable employment benefits, revising VAT classifications, and expanding pension contribution limits. 

The Bill also seeks to repeal certain tax exemptions to avoid double benefits, thereby promoting a fairer tax system and supporting economic growth.

Meanwhile, the Ethics and Anti-Corruption Commission (Amendment) Bill, 2024 aims to amend qualifications for the Commission's chairperson, requiring them to be qualified judges, which has faced criticism for potentially undermining the Commission's integrity and inclusivity.

On the other hand, the Kenya Roads (Amendment) Bill, 2024 seeks to enhance collaboration between the Kenya Roads Board and the National Government Constituency Development Fund by including its members in constituency road committees, promoting better representation in road management.

The Kenyan DAILY POST