Kenya National Chamber of Commerce and Industry ( KNNCI ) has discouraged the government from creating new regulations in the Finance Bill annually.
In a statement, the Chamber stated that the creation of yearly regulations affected the predictability of the business environment in the country.
Further speaking to the international media house CNBC, the Head of Policy Research and Advocacy, Kiplimo Kigen cited that introduction of new taxes regularly, negatively affected business persons in Kenya.
“He further insisted that it is not necessary for Kenya to have a Finance Bill every year in a bid to strengthen the predictability of our tax regime,” stated KNNCI.
Further, the KNNCi has stated that while the finance committee of parliament took account of the suggestions which had been made by the Chamber some were dropped.
KNNCI confirmed that the committee adopted 77 per cent of their submissions.
A spot check by Kenyans.co.ke depicted that the KNNCI proposed a deletion of the clause which increased the taxes on financial services.
This proposal was adopted by the Finance committee in the report tabled to Parliament on Tuesday June 18 afternoon.
Additional recommendations by the KNNCI revealed that the chamber opposed the increase in excise duty on money transfer from 15 per cent to 20 per cent.
However, proposals by the Chamber such as that to reduce the import declaration fee were not adopted.
Additionally, KNNCI reiterated that some proposals retained by the Finance Committee will negatively affect the economy and some still contain grey areas.
The Kenya Chamber of Commerce voicing its position comes after the organisation published its KNCCI Barometer Report 2024, which expressed concerns over an unpredictable business environment which was cited as a possible reason behind activity in Kenya's private sector shrinking.
