- The National Treasury in Kenya is proposing to raise the Value Added Tax (VAT) to 18%.
- This would harmonize Kenya’s VAT rate with other East African Community (EAC) member states.
- Currently, Kenya charges a VAT rate of 16%.
- The Treasury is also considering imposing excise duty on alcoholic beverages and cigarettes.
- This comes after a short reprieve where no additional taxes were imposed on these products.
- The proposed tax changes are part of President William Ruto’s administration’s efforts to generate additional revenue for ambitious programs.
- The government’s Draft Medium-term Debt Strategy for 2024-2027 includes these tax proposals.
- Kenyans have until October 6, 2023, to provide comments on the Treasury’s proposals.
- The Treasury aims to harmonize taxation of alcoholic products based on alcohol content and consider health risks.
- The proposed tax changes on cigarettes and tobacco products aim to promote fairness and consider international best practices.
Source: the-star.co.ke
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
