NAIROBI, Kenya, June 18 – Farmers and small business owners with a turnover below Sh1 million will now be exempt from electronic Tax Invoice Management System (eTIMS) registration.
According to Finance Committee Chair Kuria Kimani, the change was arrived at after considering public opinions on the Finance Bill 2024.
“We have heard avocado farmers and mama mbogas being asked to give Etims receipts. We have proposed that these people be given exemption from eTims registration,” said Kuria.
Kenya Revenue Authority had last year rolled out the portal, requiring all Kenyans owning businesses to sign up for the eTIMS.
Through the platform, businesses can generate and transmit invoices directly to the authority, ensuring tax compliance as well as efficiency in tax collection.
According to the taxman, eTIMS will ensure tax compliance and efficiency.
The government has also increased the value-added tax (VAT) threshold from Sh5 million to Sh8 million, therefore exempting small and medium enterprises from registering for VAT.
The government is mulling increasing taxes on an array of sectors, including an eco-levy, with the Treasury seeking to scale up taxation in its Medium-Term Revenue Strategy.
Moreover, the contentious 5 percent tax hike on mobile money transfers from the current 15 percent has also been removed.
The proposed bill is set to be tabled in parliament today, with lawmakers expected to interrogate it.
