The National Treasury plans to reintroduce key provisions from the suspended Finance Bill 2024 through a newly proposed Tax Procedures (Amendment) Bill 2024.
Published in the latest Kenya Gazette Supplement No. 165, the Bill will be introduced to the National Assembly to reinstate some of the contentious measures previously put on hold.
Treasury Cabinet Secretary (CS) John Mbadi revealed the proposed bill includes several critical amendments to the Tax Procedures Act to improve tax collection and administration.
The bill also seeks to extend the tax amnesty deadline from June 30, 2024, to June 30, 2025, to allow taxpayers additional time to settle their outstanding tax obligations without facing penalties or interest.
Another significant provision in the bill is introducing a new section, 37F, which allows for relief in cases where there is doubt or difficulty in recovering unpaid taxes.
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Under this provision, the Commissioner of Taxes may refer cases to the Cabinet Secretary for consideration and possible approval of tax relief, either in full or partly, to address situations where tax recovery is deemed impractical or inequitable, providing a mechanism for alleviating taxpayer burdens.
“Clause 3 of the Bill is intended to re-enact the provision on relief because of doubt or difficulty in recovery of taxes. The provision allows the Cabinet Secretary to allow a relief as determined by the Commissioner. Further, the provision requires gazettement by the Cabinet Secretary of any approved reliefs and tabling of the same to Parliament,” read the amendment bill in part.
Similarly, the bill proposes changes to the computation of time for lodging tax objections, appeals, and other related actions.
The proposed amendments would exclude Saturdays, Sundays, and public holidays from calculating time limits, potentially giving taxpayers more leeway in meeting filing and payment deadlines.
The reintroduction of these provisions is expected to face scrutiny from members of Parliament and the public, given the controversy surrounding the original Finance Bill 2024.
However, Treasury officials argue that the amendments are necessary to streamline tax administration and ensure the government can meet its revenue targets.
President William Ruto dropped the contentious bill in June following a nationwide protest by the Gen-Zs.
