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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.


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.


VAT news
VAT news