The Finance Bill, 2023 has proposed a raft of interventions to cushion small businesses, National Assembly Majority leader Kimani Ichung'wah has said.
The Kikuyu MP said the Kenya Kwanza government has included hustler-friendly measures that will tame the taxman and provide a business-friendly regime.
This is despite other radical provisions that have been seen as hitting hard the low-income earners.
For the first time, Ichung'wah said, taxpayers will be allowed to offset tax over-payments against past, current and future tax liabilities.
Presently, a taxpayer can only apply to offset tax over-payments against future liabilities.
"Further, the Bill provides that approved tax refunds shall be repaid to taxpayers within 6 months, rather than the current two years," he said.
Ichung'wah said the amendments shall ease tax obligations for taxpayers who have tax overpayments.
This will further allow Kenyans to easily access tax refunds which can be invested into beneficial and income-generating projects.
The Finance Bill also proposes to repeal Section 10 of the Excise Duty Act to cushion Kenyans from the impromptu increase in the cost of basic commodities.
Currently, the Commissioner General of KRA has the power to adjust the specific rate of excise duty once a year to take into account inflation.
This will not be the case if the proposed Finance Bill, 2023 is approved by Parliament and enacted into law.
Kenyans will also have some reprieve when they incur penalties on tax arrears with the Bill providing for a tax amnesty on penalties and interests for taxpayers.
"In this regard, once enacted into law, taxpayers who have paid their tax debts but have been uncertain about applications for waiver of penalties and interest shall benefit from tax amnesty on penalties and interests," said Ichung'wah.
Ichung'wah said the move shall encourage Kenyans to review their tax compliance status and make a voluntary disclosure to KRA so that they can benefit from the waiver of interest and penalties.
