The Value Added Tax (amendment) Bill, 2025

SPECIALISSUE

Kenya Gazette Supplement No.40 (National Assembly Bills No.11)

REPUBLICOFKENYA

KENYA GAZETTE SUPPLEMENT

NATIONALASSEMBLY BILLS,2025

NAIROBI,13th March,2025

CONTENT

| Bill for Introduction into the National Assembly- | PAGE | |-----------------------------------------------------|--------| | TheValueAdded Tax(Amendment) Bill,2025 | 237 |

THEVALUE ADDED TAX(AMENDMENT)BILL,

2025

A Bill for

AN ACT of Parliament to amend the Value Added Tax Act and for connected purposes

ENACTEDbytheParliamentofKenya,asfollows-

• 1.This Act may be cited as the Value Added Tax (Amendment)Act,2025and shall be deemed tohave come into operation on 27th December,2024.
• 2.The First Schedule to theValue Added Tax Act is amended in paragraph 146 of Part Iby deleting thewords "twelvemonths after this dateand substituting therefor the words"twelvemonths from the date of commencement of this Act"

Short title and commencement.

Amendmentof the FirstScheduleto

Cap.476.

MEMORANDUM OF OBJECT AND REASONS

The principal object of this Bill is to amend the Value Added Tax Act. The Bill amends the First Schedule in paragraph 146 of Part 1 to remove ambiguity caused by the use of the words after this date, to emphasize that the provision was to apply twelve monthsfrom the date of commencement of the Tax Laws(Amendment)Act.

Statement on the delegation of legislative powers and limitation of fundamentalrights and freedoms

The Bill neither delegates legislative powers to the Cabinet Secretary nor does it limit any fundamental rights orfreedoms.

Statement as to whether the Bill concerns counties within the meaning ofArticle 110(1)

The Bill does not concern County Governments in terms of Article 110 (1) (a) of the Constitution and it does not affect the functions and powers of County Governments recognized in the Fourth Schedule to the Constitution.

Statement of the Bill as a money Bill within the meaning of Article 114

of the Constitution

The Bill is a money Bill within the meaning of Article 114 of the

Constitution.

Dated the 13th March,2025.

KIMANIICHUNG'WAH, Leader of Majority Party.

TheFirst Schedule to Cap.476 which it isintended to amend-

EXEMPTSUPPLIES

PARTI-GOODS

146. Such capital goods the exemption of which the Cabinet Secretary may determine to promote investment in the manufacturing sector:

Provided that the value ofsuch investment isnot less than two billion shillings,and the exemption was granted before 1st January,2024 and shall continue to apply for twelve months after this date.