Kenya Finance Bill 2023: Simplifying Taxes and Addressing Refunds

Kenya's Finance Bill 2023: Clarity and Tax Refunds in Focus Kenya is working to simplify its tax laws and address issues related to tax refunds. Cabinet Secretary John Mbadi recently sat down with Mt Kenya News TV to explain the Finance Bill 2023, aiming to clarify ambiguities and improve understanding of the system. "There have been a lot of ambiguities and contradictions in our tax laws," Mbadi explained. The Bill seeks to amend various pieces of legislation, including the Income Tax Act, Value Added Tax Act, and Excise Duty Act. One key focus is on "tax expenditure," which Mbadi simplified as "tax refunds." The goal is to bring clarity to the process, particularly for those exporting goods or selling essential commodities. The video highlights the distinction between "zero-rated" and "exempt" goods, a difference that often confuses those without accounting expertise. Mbadi emphasizes the importance of understanding the distinction between input and output taxes under VAT. By clarifying these complexities, the Finance Bill aims to improve the efficiency and transparency of Kenya's tax system. The initiative demonstrates a commitment to making the tax system more accessible and understandable for all Kenyans.