Bookkeeping Audit Tax

Proposed Finance Bill 2023

The Kenya Treasury Secretary has proposed changes to the Finance Bill, 2023 that will be tabled before Parliament for debate. The proposed changes would affect the imposition of income tax, value-added tax, excise tax and various fees and penalties, as well as tax compliance requirements.

• Turnover Tax (TOT) – proposes to increase the gross sales tax from 1% to (Sales between 500,000 and 15 million).
• Digital assets tax – proposed to introduce a digital assets tax – 3%
• Digital content creators – Withholding tax of 15%
• 3% housing levy deductions.
• VAT – on petroleum products be applied at 16% from 8%.
• LPG – fall in the tax-exempt category.
• All providers of imported digital services must now register for VAT.
• Excise duty – certain firms in certain industries to pay excise instantaneously.
• Cosmetics- Human hair, wigs, false beards, eyebrows, eyelashes and artificial nails will begin attracting excise duty at the rate of 5%.
• Tax Appeals Tribunal – deposit 20% of the tax in dispute in the Tax Appeals. Tribunal at the High Court.
• Tax Procedures Act – KRA will no longer grant relief
• Import declaration fee- The bill has proposed to revise the import declaration fee from 3.5 to 2.5 %
• Railway Development Levy – The bill has also proposed to lower the RDL from 3.5 to 2.5 %