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The Finance Bill is defined as the Bill that is strongly a representation of the Country’s Finances, about what is paid in amount and what is received.
A finance bill aids in extracting the promise of payment for such a transaction, which shows the indebtedness of the debtor to the creditor. It is not an outright contract but the terms are agreed beforehand with sufficient allowances and relaxations to the deal. Interest is usually not charged, but is generally added when an extension is allowed.
A Finance Bill is issued as the proposals of the government for the levy of new taxes, modification of the existing tax structure bagging the period approved by parliament, in submission to the House of Assembly through this Bill.
Read: What you need to know about The Finance Bill 2023.
It should be understood that The Finance Bill, which is the document that outlines revenue collection measures, such as taxation has come together with the Budget itself. A budget cannot exist without the availability of a Finance Bill.
On 28 April 2023, the Kenya Treasury Cabinet Secretary presented the Finance Bill, 2023 (the Bill) to Parliament.
Proposals in the Finance Bill 2023
The Bill proposes to introduce capital gains tax where a property is transferred in a transaction that is not subject to capital gains tax, and the property is subsequently transferred in a taxable transaction within a period of less than 5 years.
Read: Amended Finance Bill: What the MPs will vote on
The Bill also provides for amendments to other non-tax statutes. Once the Finance Bill, 2023 has been subjected to public participation, it is tabled before Parliament for debate before it is signed into law by the end of June. This Tax Alert summarizes the key proposals contained in the Bill. Unless specifically mentioned, the changes contained in this analysis were expected to take effect on 1 July 2023 after assent by the President.
After having been presented to the public, the proposed Finance Bill has been officially tabled before the House of Assembly to be debated. Whereas, the first reading of it was concluded on May 4, 2023.
The chairman of the Parliamentary Budget Committee Ndidi Nyoro has moved on to assuring members of the public that the controversial Finance Bill 2023/24 is still open for amendments to accommodate their input.
He also confirmed that the Finance Committee has been going around the country to get views and comments and they will be incorporated in the Finance Bill.
