Finance Bill 2024: Parliamentary committee to start hearing bill today

Finance Bill 2024: Parliamentary committee to start hearing bill today

  • The hearings of the Departmental Committee on Finance and National Planning will mark a fundamental milestone in shaping the country’s financial policies for the 2024-2025 fiscal year.
  • Experts and stakeholders, including the Kenya Manufacturers Association, the Institute of Economic Affairs and Deloitte & Touche, have been invited to share their views.
  • Kenyans will closely monitor proposed changes such as the 16% VAT on bread and the 2.5% motor vehicle tax.
  • President Kuria Kimani assured the public that their input in the process will be taken seriously and taken into account during decision-making.

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Muyela Roberto is a seasoned journalist at TUKO.co.ke and has over nine years of experience in the digital media landscape. He has extensive experience in financial reporting and is an expert in editing. His career path includes notable stints as a business and current affairs writer at People Daily, Kenya News Agency, Scholar Media and TUKO. At TUKO, he also honed his skills as a proofreader for three years before moving to the business desk.

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The Departmental Committee on Finance and National Planning is preparing for a crucial milestone today by launching public hearings on the Finance Bill 2024.

Molo MP Kimani Kuria (left) is the chairman of the Departmental Finance Committee and the National Planning Committee.
Molo MP Kimani Kuria (L) said public views will be used to shape the Finance Bill 2024. Photo: KE National Assembly.
Source: UGC

End of presentation of memorandums

This bill, which outlines key financial policies and regulations that will guide the country during the 2024-2025 financial year, will be scrutinized by experts and stakeholders who have been invited to share their views.

Simultaneously, the deadline for submitting memorandums closes at 5 pm today, Tuesday, May 28.

Prominent entities are scheduled to appear before the Committee, including the Kenya Manufacturers Association, the Institute of Economic Affairs, the Institute of Public Finance, the Institute of Certified Public Accountants of Kenya (ICPAK) and Deloitte & Touche.

Motor vehicle tax

The chairperson of the committee, Kuria Kimani, stressed that this exercise is not a mere formality.

According to Kuria, who has been at the center of the Finance Bill storm, the committee intends to actively consider public input.

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Among the aspects of the bill that citizens will be watching closely are the proposed 16% VAT on bread and the 2.5% motor vehicle tax for vehicle owners.

According to Kimani, the highest amount a motor vehicle owner will pay annually is KSh100,000, while the minimum amount is KSh5,000.

“It is also trying to take into account a tax that users pay, or a levy… we say well, ‘I don’t want to pay the vehicle circulation tax,’ and then we don’t use the car, as if we were saying ‘I don’t want to pay pay vehicle tax.’ ‘I don’t want to use the highway,’ so don’t pay for it, go through other means,” Kuria explained in a previous interview, provoking an avalanche of reactions from the public.

Ecological tax and increase in excise tax

Other claims include the green tax, which, if implemented, will increase the price of batteries and even electronic devices.

Another point of contention is the proposed increase in excise duty on imported cooking oil and increase in excise duty on mobile money transactions.

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After public participation, the committee will prepare a report to be presented to the House.

This report will pave the way for debate on the proposed legislation during second reading in parliament.

The bill will undergo a third reading, where MPs will consider the final version of the bill before passing it.

The president will sign the bill after it obtains approval from both the National Assembly and the Senate.

More details about the Finance Bill 2024

Review by Otukho Jackson, Multimedia Journalist and Copy Editor at TUKO.co.ke

Source: TUKO.co.ke