The government, through the National Treasury, has invited Kenyans to provide feedback on how taxes should be raised in the fiscal year 2024/2025.
Treasury Cabinet Secretary Njuguna Ndung’u stated in a notice issued on Wednesday that public participation was ready for the drafting of the Finance Bill 2023.
According to the CS, involving Kenyans in the process ensures openness and accountability in financial matters, as outlined in the Constitution.
“The National Treasury and Economic Planning hereby invites Government Departments and Agencies, the private sector, non-governmental organizations and individuals to submit proposals on tax policy measures for consideration,” the notice read in part.
Kenyans were asked to align with President William Ruto’s economic recovery strategy and the country’s economic blueprint, Vision 2030, when submitting their proposals.
Ruto’s recovery strategy includes increasing tax collection in order to reduce reliance on domestic and foreign loans.
“In particular, Kenyans are encouraged to submit tax proposals that will enhance revenue collection,” the Treasury explained why taxation would increase in the 2024/25 financial year.
The increased tax revenue will aid in the implementation of the government’s development agenda and the Bottom-up Economic Transformation Agenda (BETA).
Nonetheless, participants should be specific about the tax legislation and the sections that need to be amended.
They should also clarify the proposed amendment’s goal and reinforce it with a statement on the policy issue to be addressed and a clear justification for the proposed change.
All proposals must be submitted by November 10, 2023, to budgetproposals@treasury.go.ke.
The drafting of the Finance Bill 2024 comes at a time when most Kenyans have decried the increased taxation mandated by the Finance Act 2023. Among them was a doubling of the Value Added Tax on fuel from 8% to 16%, as well as a 35% tax rate on income above Ksh500,000 per month.
The Supreme Court rejected a petition filed by Busia Senator Okiya Omtatah on September 8 to prevent the government from implementing the new tax policies.
Omtatah petitioned the Supreme Court after the Court of Appeal overturned conservatory orders issued by High Court Judge Mugure Thande on June 30.
