NAIROBI, Kenya, Jun 8 – The National Assembly Departmental Committee on Finance and Planning is expected to submit its report for consideration by legislators this week.The Committee, chaired by Molo MP Kimani Kuria, retreated to draft its report after engaging various government agencies on several issues that emerged during stakeholder engagements and public participation exercises on the Bill.Read: Tourism Ministry pushes back against VAT changes in Finance BillMost notably, the Committee met with Kenya Revenue Authority officials, led by Deputy Commissioner Maurice Oray, to discuss issues raised by the public during the recent public participation exercise on both Bills.A key point of clarification was whether the proposed gratuity gains tax relief applies only to those under public pension schemes, and what measures are needed to prevent entities from paying salaries as gratuity to avoid taxation.In response, Oray noted that the provision aims to level the playing field for all retirement benefits, including pension and gratuity, thereby empowering employees to retain more of their hard-earned money for a secure future.Committee members also voiced concerns from taxpayers about uncertainty in taxation, citing instances where tax provisions are proposed for amendment just a year after enactment, without proper analysis of their effects—leading to an unpredictable tax regime.Additionally, members raised concerns about Clause 52, which seeks to amend the Tax Procedures Act to grant data access to the KRA to enhance tax enforcement.“While it is important to enhance tax compliance, this provision would breach Article 31 of the Kenyan Constitution, which guarantees the right to privacy for all individuals and could be open to abuse,” noted John Ariko (Turkana South MP).The Committee also urged KRA to adopt an analysis-driven reclassification process when determining what to move from zero-rated to exempt status, aiming to create a predictable business environment.“Lack of certainty, particularly regarding reclassification from zero-rating to exempt status, is causing a lot of anxiety among taxpayers,” observed Joseph Oyula (Butula MP).The Committee closed its stakeholders’ forum by engaging the National Treasury and the Ministry of Trade.On 30 April 2025, National Treasury Cabinet Secretary John Mbadi presented the Finance Bill, 2025, to the National Assembly, proposing amendments to various tax laws, including the Income Tax Act, VAT Act, and Excise Duty Act, with implementation expected on 1 July 2025.Once the Finance Bill, 2025, has been subjected to public participation, it will be tabled before the National Assembly for debate and signed into law by the end of June 2025.