The government is now planning to re-introduce the eco-levy tax in its new revenue collecting proposal as it seeks to collect Ksh.150 billion more to plug into the deficit caused by the withdrawal of the Finance Bill 2024.
After giving signals on the possible return of some of the clauses in the controversial bill that was shot down by weeks of Gen-Z led protests, the government in now in the final stages of crafting other tax-raising measures, through the Tax Amendment bill, which has 47 clauses, and being processes for a fresh introduction to Parliament.
Treasury CS John Mbadi has disclosed that the controversial eco-levy will be among those clauses which will make a comeback.
“We have lined up 47 amendments among them the eco-levy, we will however remove the ban on sanitary pads and other sensitive items,” he stated.
‘Sensitive’ items like sanitary towels will be excluded from the list.
The government is also targeting to collect more taxes by extending the tax amnesty period by six months, to allow more Kenyans to file their returns.
“Some people have been avoiding paying taxes because of the deadlines. We hope that we will have more people paying,” he further stated.
There will be a tax-exemption on some of the basic commodities like bread, this move will save an additional Ksh.70 billion according to the CS.
“We have been paying Ksh.525 billion in tax refunds and some are fictious… By tax-exempting bread, we will maintain the same but reduce government expenditure,” noted the CS.
The CS further stated that a series of changes at the Kenya Revenue Authority will be instituted which will also bring to the coffers, another Ksh.105 billion by “sealing all loopholes through automation of systems.”
The ministry is rushing to have these tax measures in place by September 30.
These government says these new measures will help pay teachers who have threatened to go on strike, pay security forces and help with university funding.
