Government drops contentious tax proposals from the Finance Bill 2024.

16% VAT on bread removed

Excise duty on vegetable oil removed

VAT on transportation of sugar removed

2.5 per cent Motor Vehicle Tax removed

Eco Levy on locally manufactured products removed

eTims receded from farmers and small businesses with a turnover of below Ksh.1 million

Excise duty imposed on imported table eggs, onions and potatoes to protect local farmers

No increase on mobile money transfer

VAT on financial services and foreign exchange transactions has also been removed

Threshold for VAT registration has been increased from KSh5 million to KSh8 million. This therefore means that many small businesses will no longer need to register for VAT