KENYA REVENUE AUTHORITY AMEND TAX LAWS

KENYA REVENUE AUTHORITY AMEND TAX LAWS

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%.