Members of the National Assembly in a session last year. PHOTO | FILE | NATION MEDIA GROUP
What you need to know:
Companies and individuals will start paying new taxes at the start of a financial year every July 1 if lawmakers adopt a proposed law that seeks an earlier approval of the Finance Bill to cure delays in collection of duty that has in the past hurt revenue collection targets.
The Business Laws (Amendment) Bill, 2019 requires that Treasury table the Finance Bill in Parliament before April 30 and have it approved by the President as law by June 30.
President Uhuru Kenyatta signed the Finance Bill for the current financial year on November 7, meaning that by then, KRA had lost four months of collecting new taxes outlined in the Budget.
Companies and individuals will start paying new taxes at the start of a financial year every July 1 if lawmakers adopt a proposed law that seeks an earlier approval of the Finance Bill to cure delays in collection of duty that has in the past hurt revenue collection targets.
The Business Laws (Amendment) Bill, 2019 requires that Treasury table the Finance Bill in Parliament before April 30 and have it approved by the President as law by June 30. This is a departure from the current trend where the Finance Bill is tabled in Parliament after the third week of June and takes months before it becomes law. The resulting delays have deferred collection of new taxes, which have made it difficult for the Kenya Revenue Authority (KRA) to meet its revenue collection targets, prompting frequent review of to the national Budget to accommodate the lower revenue collection.
