- 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.
