Finance Bill, 2024 Tax Alert

In its raft of changes, the Government has proposed to introduce new taxes such as the motor vehicle tax, significant economic presence tax, Eco Levy as well as re-classification for VAT on various products from either exempt or zero-rated to standard rated at 16%. On the other hand, there are a few proposed reliefs such as VAT exemption on the transfer of business as a going concern and increasing the threshold for the registration of VAT from KShs 5 million to KShs 8 million. We have articulated the numerous tax proposals in the subsequent sections of this alert and we will keep you posted of any developments as the FB 2024 goes through public participation before it is enacted into the Finance Act, 2024 by 30 June 2024.