RUTO forced to listen to Kenyans as he drops punitive taxes in the Finance Bill 2024 after public pressure – Look! Never joke with Kenyans

 

Tuesday, June 18, 2024 – President William Ruto has been forced to listen to the cries of Kenyans. 

This is after he dropped punitive taxes proposed in the contentious Finance Bill 2024 after the Kenya Kwanza Parliamentary Group meeting held at State House.

Speaking after the PG meeting, Finance Committee Chair Kimani Kuria announced that the government had responded to public feedback by reducing proposed taxes in the Finance Bill 2024.

Kuria clarified that the proposed Eco Levy would only apply to imported finished products, exempting those manufactured within Kenya. 

He further specified that diapers and sanitary towels produced domestically would not be subject to this levy.

In a move to ease the burden of the rising cost of living, the committee also confirmed the removal of the proposed increase in tax on mobile transactions from the bill.

Further, the proposed VAT on financial services and foreign exchange transactions has also been removed.

Moreover, the Kenya Kwanza Parliamentary Group decided that the government would abandon contentious taxes aimed at increasing VAT on bread by 16 per cent.

The PG also removed the controversial motor vehicle circulation tax.

Additionally, the government plans to reduce proposed taxes on cooking oil to ensure affordability for Kenyans.

While announcing the new proposed Finance Bill 2024 amendments, the Kenya Kwanza Government was keen to elaborate that the proposals had been implemented to boost the growth of the Kenyan manufacturing sector.