Finance Bill Chairperson:This is not a final tax

By Robert Mutasi 

Finance Bill Committee Chairman Kuria Kimani has informed the public that the Finance Bill 2023 is not a final tax bill. 

Kimani has explained that the bill is intended to provide guidance and clarification on tax payments and deductions. 

In an interview with the press, Kimani has stated that the bill is going to simplify the entire accounting process.

He has further clarified that the processes were lengthy, causing many Kenyans to struggle to go through them.

"Many Kenyans do not want to go through all the accounting processes when filing their returns. We are informing them that there is another option, which is to use the turn over tax," he said.

He encourages Kenyans to consider using turn over tax as it simplifies the accounting processes that may seem cumbersome to many.

Turn over tax is charged at a rate of 1% on gross monthly sales, and it is considered a final tax.

A turn over is similar to Value Added Tax, with the difference that it taxes intermediate and possibly capital goods.

He defended the Finance Bill 2023 saying that is to simplify the taxation process for Kenyans and give them multiple ways of paying tax.

"If you feel that you're within an income bracket that do not go to the complexities of what is deductible or what is not then we just pay three percent of your turn over and we are going to give you perspective,"Kimani explained.

He has given out another alternative for those who are not willing to use turn over, to use allowable expenses.

Here,Kenyans will combine their incomes and pay at 30 percent.

Allowable expenses are coats that are essential to running the business and can be deducted from your taxable income to reduce the income tax liability.