By Mercyline Omware
Kenya Revenue Authority (KRA) has amended
tax laws contained in Legal Notice No. 35 of
2020 and Business Laws (Amendment) Act,
2020 in line with the measures taken by the
government to mitigate effects of COVID-19, the
following changes take effect as follows:
Reduction of VAT from 16% to 14% with effect
from 1st April, 2020.
The change shall affect the VAT returns to be
submitted after April, 2020.
Business Laws (Amendment) Act, 2020
amended the Income Tax Act to provide for
investment deduction equal to one hundred and
fifty percent of the capital expenditure of at
least five billion shillings incurred on the
construction of bulk storage and handling
facilities for supporting the Standard Gauge
Railway operations of a minimum storage of
one hundred thousand metric tonnes of
supplies.
The Business Laws (Amendment) Act, 2020,
amended the 1st schedule of the Excise Duty
Act, 2015 by imposing excise duty on imported
glass bottles (excluding imported glass bottles
for packaging of pharmaceutical products) at a
rate of 25%.
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