National Assembly Finance Committee chairman: Proposal to Reduce VAT in 2024

• National Assembly Finance Committee chairman Kuria Kimani is considering reducing the rate of Value Added Tax (VAT) in the next financial year’s revenue-raising plan
• There is pressure from East African Community member states for a uniform VAT rate of 18%
• Kimani suggests that reducing VAT could lead to lower prices of goods and incentivize the market
• The government may not deviate significantly from current tax measures in the upcoming Finance Bill
• The aim is to achieve an optimum tax rate that generates good revenue without affecting the disposable income of Kenyans
• Since 2003, Kenyans have paid 16% VAT on goods and services, down from 18% before then
• The National Treasury is considering reducing corporate tax and reviewing excise duty on petroleum products to boost revenue collection.

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.

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