The Tax Laws (Amendment) Bill, 2020

The Tax Laws (Amendment) Bill, 2020 was published on 30 March 2020 (the Bill) to make amendments to tax-related laws in Kenya including the Income Tax Act (CAP 470), the Value Added Tax Act, 2013, the Miscellaneous Fees and Levies Act, 2015 and the Excise Duty Act, 2015. The National Assembly will, on 8 April 2020, consider and vote on the Bill and forward it for assent to the President.

The Bill was expected to bring in the measures set out in the President's address of 25 March 2020, and which we advised you on through our earlier Legal Alert (Highlights of the Covid-19 Tax Measures). However, it is surprising to note that the Bill has far-reaching tax measures introducing a large number of tax changes and in particular, removing a large number of VAT exemptions on essential goods and services such as medicines and agricultural inputs. While it is appreciated that the introduction of tax reliefs to the Kenyan taxpayers would have resulted in revenue deficits for