This places an obligation for persons in the logistics industry to account for withholding tax on demurrage payments. CS Rotich said Ksh8.9billion  will be spent to enhance security operation in the country with Ksh3 billion going to securing the Kenyan borders. Removal of proposed new tax bracket: the proposal in the Income Tax Bill 2018 to introduce a new tax rate of 35% bracket for persons with a monthly income of KES 750,000 or more has been revoked. Among the sectors targeted to stimulate the economy include tourism, which continues on a recovery path largely due to improved security in the country and effective tourism promotion strategies, as well as the adoption of zero based budget approach to reduce government expenditure as well as support the Big Four Agenda. Henry Rotich (theCS) presented the Budget Statement for the fiscal year 2018/2019 to Parliament on 14 June 2018, unveiling a record KES 3.07 trillion spending plan. Also, the proposed changes and some of their potential effects are in: Z-NEWS- BRIEF ANALYSES OF TAXATION PROPOSALS PRESENTED IN THE 2018-2019 KENYA NATIONAL BUDGET

The Cabinet Secretary for National Treasury and Planning, Hon. Name (required) Email (required) Feedback, Decision to expel Ekuru Aukot still stands-Thirdway Alliance, Bensouda urges Kenya to surrender Bett and Barasa to ICC, President Kenyatta meets Pope Francis at start of Official Visit to Vatican, Commerce, Covid-19 top agenda as Uhuru meets Italian counterpart, America “sneezes” as world await results of divisive poll, Political gatherings banned as Govt reviews COVID-19 control measures, Passport applicants affected as Immigration scales down operations, Burial for lawyer Nzamba Kitonga underway in Kitui, Burial of Kakamega Chief of Staff Sumbi stopped over family feud, Coronavirus: US hits record daily case rise three days running, MOH team inspects Isiolo referral hospital following public outcry, KDF officer arrested for kidnapping man in Kasarani, Basketball: Moran’s squad set to be unveiled ahead of AfroBasket qualifiers. This will effectively tax persons operating in the informal economy. Print Posted by: Kenya Today - Kenya News on 14/06/2018 Kenya Budget Estimates 2018 - 2019.

Late payment penalty at twenty (20) per cent and interest at two (2) per cent introduced in Betting, Lotteries and Gaming Act. The following three items are proposed to be exempted from VAT: a) Equipment used in the construction of grain storage facilities. Turnover tax to be replaced with Presumptive tax. Money transfer services by cellular phone service providers to be increased to twelve (12) per cent. Animal feeds: proposal to exempt raw materials for production of animal feeds. The following are the specific proposed changes: Under Excise duty, there are proposals on four items where the duty will be increased in three items and introduced in one item.

8 /Filter /DCTDecode >> EY Tax News Update: Global Edition EY’s new Tax News Update: Global Edition is a free, personalized email subscription service that allows you to receive EY Global Tax Alerts, newsletters, events, and thought leadership published across all areas of tax. Under income tax, various changes are proposed. We await the Finance Bill to confirm the specific tax measures. The Kenya Budget 2018/2019 is focused on fulfilling President Uhuru Kenyatta’s big four agenda that we will highlight bellow. Budget Statement 2018-19 Budget Statement 2018-19 Download the Highlights of the Budget Statement 2018-19. There was little focus on value added tax (VAT), possibly because VAT amendments are substantially addressed by the Tax Laws (Amendment) Bill 2018. %PDF-1.3 ���:�.9e]¥Zc���.G��G%n_��Y����luqq��@՜=�„=��7���|sG����):��Й�:\p���Z/��\��X��D��釄�=�h�����p�s��^>�k՟���o섈ۢAt��pm��I����h�WD�Q��;��(��g�0��,TV�����V���q%�p�]��z-�|DIv�0�xŻW̏�9Q��rqi���X=z L���3��N��rJY;>�����g���X0=8�h����^�'j~t�jA�p�Mu���T�!M4��t�!�CB3���f�pPt���Ow�TPp=A'C+ ��~��hn�q���(��0nUv%���\�n��� Extension of the tax amnesty deadline endobj >> /Font << /TT5 16 0 R /TT3 10 0 R /TT1 8 0 R /TT7 18 0 R >> /XObject << Q^��Ow"���ڽ�绝�F�~������b��;�#gb��b�u��q�è\��q��ů"���k�ĥ�cq�eG��rv/N+m� wWb���m=��gw{ie�y~��O(��ܽZ�Ť����'�� @��VM�j+TA Y�N�%�=c;��Vjm�.�����-坼���72�Q����o�O�/y���ȫk���+���z�M��� Under VAT, the CS proposed some changes inform of tax exemptions. Paper and paper board products duty to be increased to thirty-five (35) per cent. We only promote products that we have used. The increase in excise duty will increase the costs of cellular money transfer services which will impact on the common mwananchi. In addition to the above tax measures, the CS has proposed key changes to the following laws: The full Budget Statement may be accessed here. To encourage investments in the country, government to provide special incentives in the VAT Act (2013), Income Excise duty Act and Miscellaneous Fees and Levies Act and provide preferential tax rate under Income Tax Act. Some of the proposed changes include: (a) iron/steel industry: to increase import duty from the current 25% to 35% on iron and steel products imported into the region; (b) paper and paper products industry: to increase import duty from the current 25% to 35% on paper and paper board imported into the region; (c) textile and footwear industry: to introduce a specific rate of import duty of USD 5 per unit or 35% whichever is higher, on raw materials imported into the region; (d) vegetable oils sector: to introduce a specific rate of USD 500/MT or 35% whichever is higher on imported vegetable oils; (e) pesticides: full (100%) remission on import duty on the importation on inputs and raw materials for the manufacture of pesticides and acaricides pursuant to the EAC Duty Remission Scheme; (f) tourism sector: full (100%) remission on import duty on the importation of motor cars, sightseeing buses and overland trucks imported by licensed tour operators under the EAC Duty Remission Scheme; and. To support mining activities and geophysical mapping of the country’s minerals, Ksh 509 and Ksh 500 million was allocated respectively. The drought suffered by the country and the lengthy electioneering period in 2017 were cited among the factors attributed to the adverse impact.

By providing a uniform exercise duty rate for both types of fuels, the Government hopes to curtail fuel adulteration. To deal with shortage of teachers in public schools, treasury allocated Ksh5 billion for hiring teachers. In this bulletin Corporate tax 2 Personal tax 4 The full list of the proposals is available from the Finance Bill. In order to enhance access to affordable credit SMEs regarded as high risk borrowers, the Government plans to introduce a National Credit Guarantee Scheme. This is likely to bring down the cost of production of laptops locally and thus the retail prices of locally assembled laptops. Presenting this year’s budget proposals in parliament under the theme ‘creating jobs and transforming lives’ National Treasury Cabinet Secretary Henry Rotich said the 2018/2019 budget is  an opportunity to boldly confront the challenges the country faces in creating job opportunities for the youth and to benefit everyone. Written By: Collins Anampiu/Christine Muchira. The CS noted the underperformance of the economy last year which grew at a rate of 4.9%, falling below the 5.6% average growth rate achieved over the last 5 years. The rationale is to encourage local manufacture of laptops, innovation and job creation.

Amnesty for income earned and assets held outside Kenya: Reporting period extended to 30th June 2019.

Kenyan taxpayers must always rely on the most current information from KRA. Lauding improved security in the country, the CS allocated further Ksh6.4 billion to the Criminal Investigations Services and Ksh5.1 billion to the Office of the Attorney General. stream /Rotate 0 >>

%��������� The East African Community Custom Management Act, 2004 and the EAC Common External Tariff (CET) are undergoing extensive review, aimed at promoting industrialization, encouraging local manufacturing and investments and creating incentives in the agricultural and manufacturing sectors. Under customs, there are proposals to introduce duty, increase duty, avail exemptions and allow imports under existing schemes. For more on the proposed taxation changes, get a copy of the Finance Bill (2018). Enhancing the tourism sector still remains key for the country with the National Treasury allocating Ksh1billion for marketing and promotion of tourism activities, a reduction from the Ksh2.7 billion the sector got in the current financial year.