The National Treasury tabled the Finance Bill, 2023 (the Bill) before the National Assembly on Thursday, 4 May 2023.
The Bill proposes a raft of tax changes which are geared towards expanding the tax base and raising revenues to meet the government’s ambitious budget of KES 3.6 trillion for the year 2023/2024. The proposals are also a pointer to the priority sectors which the government is targeting to grow the economy and ease the cost of living.
In the recent past, the government has struggled to meet its expenditure requirements and in some of the proposals the government has sought to increase taxes to bridge its fiscal deficit.
Some of the notable changes include:
- Introduction of an export and investment promotion levy on specified imports
- 35% tax rate for income above Kes 500,000 per month
- 3% contribution by employees and employers respectively to finance affordable housing projects
- Exemption of exported services from VAT
- Increase of turnover tax from 1% to 3%
- 15% withholding tax on income earned by digital content creators.
- Increase in the VAT rate on petroleum products from 8% to 16%
Click on the link below for more insights on the Finance Bill, 2023 proposals:
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