KEPSA pushes for sustainable tax policy in rejected Finance Bill 2024
The private sector in Kenya, represented by the Kenya Private Sector Alliance (KEPSA), had previously tabled tax proposals to the finance committee and is now pushing for further inclusion of these proposals after President William Ruto rejected the Finance Bill 2024 and sent it back to Parliament for revision. To voice some of their concerns, CNBC Africa's Tabitha Muthoni engaged in a detailed discussion with Carole Kariuki, CEO of KEPSA.
Thu, 27 Jun 2024 14:37:36 GMT
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AI Generated Summary
- KEPSA's proposals on eco-levy, vehicle tax, and VAT on bread to ease tax burden and support economic growth
- Emphasis on a conducive regulatory environment to attract investors and enhance competitiveness in the global market
- Continued engagement with the government to address wasteful spending, propose incentives for business, and combat corruption in procurement processes
The Kenya Private Sector Alliance (KEPSA) is at the forefront of advocating for a sustainable tax policy in Kenya, following President William Ruto's rejection of the Finance Bill 2024. Carole Kariuki, the CEO of KEPSA, highlighted the importance of a predictable tax environment for investors, emphasizing the need for a national tax policy that provides stability over changing tax laws every year. The private sector had proposed various tax reforms to the Finance Committee, aiming to ease the tax burden on businesses and promote economic growth.
One of the key proposals that KEPSA put forward was related to the eco-levy, advocating for a tax on finished goods that are not essential and not environmentally friendly. Another critical proposal addressed the vehicle circulation tax, which was successfully revised before the bill was passed in Parliament. Additionally, KEPSA raised concerns about VAT on bread, highlighting the negative impact it could have on consumers' purchasing power and manufacturers' ability to produce goods.
Moreover, the private sector emphasized the importance of a conducive regulatory environment to attract investors and promote competitiveness in the global market. Carole Kariuki pointed out that excessive taxation without focus on generating revenue through growth and reducing wastage in government spending could hinder economic progress. In line with this, KEPSA will continue engaging with the government to recommend areas where cost-saving measures can be implemented to eliminate wasteful expenditure.
Looking ahead, KEPSA aims to collaborate with the government to ensure an acceptable Finance Bill by July 23, focusing on policy consistency and sustainable revenue generation. The alliance plans to propose incentives for businesses, such as timelines for tax changes to allow for industry adaptation and investment planning. Additionally, efforts will be directed towards addressing corruption in procurement processes to enhance transparency and accountability in government spending.
In the event that their calls are not heeded, KEPSA remains committed to engaging with stakeholders across various sectors, including the youth, to advocate for a conducive business environment and sustainable economic growth in Kenya. Carole Kariuki underscored the importance of collective efforts in safeguarding the country's competitiveness and ensuring its position in the global market, urging for unity and collaboration among all Kenyan citizens to drive positive change.
