Tax Legislative Changes Contained in Legal Notice No. 35 of 2020 and Business Laws (Amendment) Act, 2020

PUBLIC NOTICES 02/04/2020

Kenya Revenue Authority informs registered taxpayers and the general public about the changes in tax laws contained in Legal Notice No. 35 of 2020 and Business Laws (Amendment) Act, 2020.


VAT ACT, 2013


Following measures taken by the government to mitigate the effects of COVID-19, the government has through Legal Notice number 35 of 2020, reduced the rate 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.


INCOME TAX ACT, CAP 470


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.


EXCISE DUTY ACT, 2015


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%.


For further clarification and facilitation, please contact the Contact Centre on
Tel: 020 4 999 999, 0711 099 999 or Email callcentre@kra.go.ke

Commissioner for Domestic Taxes