THE FINANCE ACT 2018 IN KENYA

Welcome to WordPress. This is your first post. Edit or delete it, then start writing!

The Finance bill 2018 was passed by the National Assembly on the 30th August 2018, and was presented to the president for assent on the 13th September 2018, which he refused to assent and made some recommendations through the presidential memorandum. All the recommendations were passed by parliament on 20th September 2018 as below;

  1. Petroleum products shall attract tax at a rate of 8% of the taxable value effective from the date of assent. Down from the previous proposal of 16 %
  2. Telephone and internet data services shall be charged excise duty at a rate of 15% of their excisable value. Up from 10 %
  3. Fees charged for money transfer services by banks, money transfer agencies and other service providers shall attract Excise duty at a rate of 20% of their excisable value. Up from 12%
  4. Excise duty on other fees (i.e. ATM withdrawal charges) charged by financial institutions shall be 20% of their excisable value.
  5. An employer shall pay to the National Housing Development Fund in respect to each employee employer’s contribution at 5% of the employee’s monthly basic salary and employee’s contribution at 1.5% of the employee’s monthly basic salary. Provided that the sum of the employer and employee contribution does not exceed Ksh5,000 up from 0.5 % as was proposed.
  6. Anti-adulteration levy of KSh 18 per litre of kerosene Sugar confectionery, including white chocolate, chocolate blocks, slabs or bars excise duty to be charged at a rate of Ksh 20 per kg.
  7. Motor vehicles to attract excise duty at a rate of 20% or 30 %
  8. Reduction of lotteries, betting and gaming taxes from 35% to 15%

1 thought on “THE FINANCE ACT 2018 IN KENYA

Leave a Reply

Your email address will not be published. Required fields are marked *