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The National Treasury and Planning is proposing to introduce VAT exemptions on ventilators, decongestants and supplements in order to boost the health sector by lowering costs.
Presenting the 2021/2022 and Medium-Term of Sh3.632 trillion Budget alongside the Finance Bill 2021 to Parliament for consideration, Treasury Cabinet Secretary Ukur Yatani said that the budget will focus on the Covid-19 recovery and the Big Four Agenda.
“We are proposing to introduce VAT exemptions on ventilators, decongestants and supplements in order to boost the health sector by lowering costs,” he stated.
In a press statement, the CS said that the Sh3.632 trillion budget proposes to strike a balance between stimulating economic recovery and responding to the health challenges of the coronavirus pandemic.
“In preparing the estimates we have been very alive to the current challenges of the ongoing pandemic, while ensuring that we continue on a steady path of economic recovery, by investing KES 26.6 billion on the Post Covid-19 Economic Stimulus Programme (PC-ESP) and KES 135.3 billion on the President’s Big Four Agenda covering universal healthcare, food and nutrition, manufacturing and affordable housing,” stated Yatani.
In the proposed budget, the Executive, Parliament, and the Judiciary have been allocated Sh1.879 trillion, Sh37 billion, and Sh17 billion respectively.
The CS said that the Finance Bill 2021 is seeking to amend the Income Tax, the VAT Act, the Excise Duty Act, the Tax Procedures Act, the Miscellaneous Fees, and Levies Act, as well as the Capital Markets Act.
It will also amend The Central Depositories Act, the Kenya Revenue Authority Act, the Insurance Act, and the Retirements Benefit Act to facilitate realisation of the budget proposals.
Further, Yatani added that the ministry will also support youth employment by proposing tax deductions for employers that engage (TVET) graduates as apprentices.
“….while also supporting youth employment by proposing tax deductions for employers that engage Technical and Vocational Education and Training (TVET) graduates as apprentices. We are also proposing several amendments to enhance tax administration and dispute resolution operations. These proposals alongside others contained in the Finance Bill will help create the legal and policy framework to achieve our medium-term budget goals,” said Yatani
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