Full list of Tax amendments proposed by Treasury CS Ukur Yattani in 2020/2021 budget

In his address, CS Yattani highlighted a number of proposed tax amendments for the members of parliament to consider and possibly approve.

The CS was keen to maintain import duty on products that are locally manufactured in order to prevent unfair competition from cheap imports.

He also proposed a new Digital Services Tax to guide in the collection of revenue from businesses conducted via the internet.

Also Read: Top 3 biggest allocations in Yattani's Sh2.75T budget

Treasury CS Ukur Yattani when he read the 2020/2021 budget at the National Assembly Pulse Live Kenya

CS Yattani explained that the new measures were expected to generate Sh38.9 billion in revenue for the exchequer.

Tax Exemptions

The following items were listed to now be duty free under the East African Community Duty Remission Scheme.

Imports of products used to manufacture baby diapers as well as imports of products used in the textile and apparel sector.
Imports of items used in manufacture or assembly of mobile phones
Raw materials for the manufacture of masks, sanitizers, ventilators and PPEs
VAT exempt on maize/corn seeds
Ambulance services added to medical, nursing and dental services exempt from VAT
Imports development fee and railway levy on imports by the Kenya Defense Forces and the National Police Service
Roads toll for entities involved in pubic-private partnerships

Revised Taxes

35% import duty maintained on imported metal and alloy
25% import duty on paper and paper-board products
Leather and textiles maintained import duty at 25%
35% import duty on electrical parts and accessories instead of 25% imposed in the 2019/2020 budget
Rental Income Tax at 10% for individuals earning an annual rental income of Sh10 million revised upwards to cover individuals earning annual rental income of Sh15 million and below
1.5% Digital Services Tax on the value of transactions conducted by online businesses
Minimum tax of 1% of gross turnover to all companies that continue to declare losses year-in year-out

The CS also proposed a Voluntary Disclosure Programme which will ran for three years to allow Kenyans who may have not declared their taxes over the last five years to report themselves and pay the taxes due without penalties.