– The National Treasury in Kenya is proposing to raise the VAT rate from 16% to 18% to generate additional revenue.
– This move aims to harmonize Kenya’s VAT rate with other East African Community (EAC) member states, most of which already have a VAT rate of 18%.
– The National Treasury is also considering reintroducing excise duty on alcoholic beverages and cigarettes, after a temporary reprieve.
– The proposed tax changes are part of President William Ruto’s administration’s efforts to fund ambitious programs.
– The government’s Draft Medium-term Debt Strategy for 2024-2027 outlines these tax proposals.
– The Treasury plans to harmonize excise duty rates for cigarettes and other tobacco products, as well as peg excise duty on alcohol to its alcohol content.
– The aim is to discourage the consumption of high-risk alcoholic products and promote fairness in taxation.
– The Treasury is seeking public comments on these proposals until October 6, 2023.
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.
