The Excise Duty (amendment) Bill, 2025

SPECIALISSUE

Kenya Gazette Supplement No.32 (National Assembly Bills No.7)

REPUBLIC OFKENYA

KENYA GAZETTE SUPPLEMENT

NATIONALASSEMBLYBILLS,2025

NAIROBI,6th March,2025

CONTENT

| Bill for Introduction into the National Assembly- | PAGE | |-----------------------------------------------------|--------| | The Excise Duty(Amendment) Bill,2025 | 173 |

PRINTEDANDPUBLISHEDBYTHEGOVERNMENTPRINTER,NAIROBI

Description

Rate of Excise Duty

Imported FullyAssembled Electric transformers and parts of tariff codes 8504.23.00, 8504.31.00,8504.32.00, 8504.34.00

25%

MEMORANDUM OF OBJECTAND REASONS

The principal object of this Bill is to amend the Excise Duty Act to

remove excise duty on imported fully assembled electric transformers. This excise duty was imposed in the Tax Laws (Amendment) Bill,2024 with the intention to support local assemblers.However,the amendment has had negative effect on the manufacture and supply of transformers by increasing the cost of importing parts.

It is intended that this amendment will reduce the cost of electricity

and enhance power connectivity through additional manufacture and supply of transformers to the Kenya Power and Lighting Company.

Statement on the delegation of legislative powers and limitation of fundamental rights and freedoms

The Bill neither delegates legislative powers to the Cabinet Secretary

nor does it limit any fundamental rights or freedoms.

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 1l4 of the Constitution.

Dated the 5th March,2025

KIMANIICHUNG'WAH, Leader of Majority Party.