Taxes MPs approved in changes to Finance Bill

President Uhuru Kenyatta is expected to sign the Finance Bill 2022 after lawmakers approved tax measures aimed at raising the Sh3.3 trillion budget.

The Treasury, through the Finance Bill, seeks to generate at least Sh51.6 billion in revenue to finance the budget for the financial year starting July 1.

The National Assembly went on an indefinite recess (Sine Die) pending the August 9 General Election. This means President Kenyatta can only approve a raft of amendments to the Bill.

The Treasury is seeking to raise funding to plug a Sh846 billion budget deficit. MPs amended the Bill to reduce taxes on basic commodities like maize, wheat and cassava flour.

The Treasury had proposed to remove the items from the tax-exempt list, a move that will have increased the price of maize, wheat and cassava or meslin flour and maize flour containing cassava flour by more than 10 percent in weight.

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The Finance and National Planning Committee chaired by Gladys Wanga amended the Bill to cut value-added tax on liquid petroleum gas (LPG) from 16 percent to eight percent.

MPs rejected a proposal to exempt excise duty on imported fertilised poultry eggs in a move meant to protect local poultry farmers and individuals with local hatcheries.

The House rejected a proposal to charge excise duty on…