The National Assembly Finance and Planning Committee has made additional recommendations to a number of contentious clauses in the Finance Bill 2023, ahead of its tabling in Parliament on Tuesday.
The proposal to reduce the 3% Housing Levy to 1.5% and deduct it only from employees is at the top of the list of recommendations.
The committee, led by Molo MP Kuria Kimani, also recommended that its implementation be postponed until January 2024 in order to establish a solid legal framework ahead of time.
“For an amendment that has a huge financial implication, you must find a way of recouping that implication.
“Otherwise, we are going to get a crisis where we have approved and we have not provided the resources to do so,” Kuria explained the reason behind the deferment.
The Levy was the main topic of discussion during the Finance Bill 2023 public participation hearing.
Kuria stated on Sunday that they are also recommending that the 15% VAT on Digital Content Creation be reduced to 5.
The Committee also recommended tax breaks for agricultural inputs, vaccines, and electric cars.
The National Assembly Finance Committee, on the other hand, has recommended that the 16% VAT on petroleum products be retained.
With the Finance Bill 2023 scheduled for tabling in parliament on Tuesday, the bill’s second reading on the floor of the house is expected on Wednesday, following approval by the House Business Committee.
