Overview
The Finance Bill, 2022 (the Bill) was tabled at the National Assembly on Tuesday, 12 April 2022. This year, the Bill was released earlier than usual to facilitate its passing before the National Assembly takes a break to prepare for the general elections that are scheduled for August 2022.
In his budget speech, the Cabinet Secretary proposed tax measures that he expects to generate additional revenue of KES 50.4 billion. This is a relatively small amount when looked at in the context of the overall budget of over KES 2 trillion and is indicative of the shrinking avenues for raising additional revenue in an economy that is in turmoil.
The proposed tax measures included in the Bill cover incentives to promote the manufacturing and healthcare pillars of the Big 4 Agenda as well as procedural measures to safeguard tax revenues. In addition, the Bill has proposed clarifications and new measures on the taxation of digital services and financial derivatives, introduced new procedures for refund of tax overpayments and changes to the Transfer Pricing provisions, among others.
In the link below, we provide our analysis of the proposed changes.
