Treasury Cabinet Secretary Njuguna Ndung'u has proposed the reduction of excise duty on the fees charged for money transfer services.
Speaking while reading the budget in Parliament on Thursday, the CS proposed a reduction from 12 per cent to 10 of the excisable value.
"This will encourage retail transactions at a more affordable rate and promote economic activity at MSMEs level," he said.
Ndung'u noted that payment service providers licenced under the national payment system are not excluded.
Further, the CS also proposed the reduction of excise duty from 20 per cent to 15 per cent in respect of fees charged for telephone and internet data services.
This according to Ndung'u include fees charged for money transfer services by banks, money transfer agencies, and other financial service providers.
Other proposals from the CS are; To impose an excise duty on imported furniture at a rate of 30 per cent of the customs value excluding furniture originating from EAC countries, the amendment of VAT Act to remove the preferential rate on petroleum products so that the products will be subject to the standard VAT at 16%
Ndung'u also proposed to rationalise goods and services in the 1st & 2nd schedules of the VAT Act by transferring some goods and services from zero-rating to exempt status and from exempt status to taxable at the standard rate .