The Kenya Kwanza government has made a major U-turn on key tax proposals President William Ruto was relying on to foot his 2024/2025 budget.
In a press briefing on Tuesday, the Ruto-led team revealed that the taxes have been scrapped to accommodate the views of Kenyans.
Here is the Breakdown:
- 16 per cent VAT on bread removed.
- VAT on the transportation of sugar was also removed.
- VAT on financial services and foreign exchange transactions has also been removed.
- No increase in mobile money transfers.
- 2.5 per cent Motor Vehicle Tax has also been removed
- Excise duty on vegetable oil removed
- Locally manufactured products, including sanitary towels, diapers, phones, computers, tyres and motor cycles, will not attract the Eco Levy.
- Levies on the Housing Fund and Social Health Insurance will become income tax deductible. No income tax on the levies.
