The Kenya Kwanza Government has dropped major tax proposals that have attracted uproar among Kenyans in recent weeks.

The announcement came after President William Ruto hosted a parliamentary group meeting at State House, Nairobi, on Tuesday.

In a press briefing after the PG meeting, the Ruto team said the proposals were dropped following a public participation exercise that saw Kenyans raise opposition against them.

FINANCE BILL 2024: Finance Committee drops proposed 16pc VAT on bread, eco levy to only apply to imported finished products, only imported eggs, onions and potatoes to be charged VAT.

1. The proposed 16% VAT on bread has been dropped.

2. Increase in taxation on mobile phone transfers has been dropped. Also, no additional taxes on bank transfers.

3. All locally manufactured items, incl diapers and sanitary pads, will not be subject to the Eco Levy.

4. Turnover Tax: VAT threshold to be increased from 5m to 8m. SMEs that have a turnover of less than 8m will not be required to register for VAT.

5. eTIMS: Businesses with a turnover of below 1m, incl small scale avocado farmers, will be exempted from eTIMS registration.

6. Local farmers: Excise duty will only be levied on imported table eggs, imported onions, and imported potatoes.

7. Alcohol: They’re now changing it from a volume-based taxation to alcohol content – based taxation.

Alcohol manufacturers producing alcohol with very high alcohol content will be required to pay higher duty based on alcohol content.

8. Pension: They’re now increasing the amount allowable for tax exemption for pension contributions, from 20,000 to 30,000 per month.

9. JSS Teachers: All the 46,000 JSS teachers will be hired on permanent and pensionable terms, in addition to recruiting another 20,000.

10. Motor Vehicle Tax: Has also been dropped.

11. Sugarcane farmers: VAT on transporting sugarcane from the farms to the milling factories, has also been dropped.