The Kenya National Chamber of Commerce and Industry (KNCCI) has voiced its concerns regarding the Finance Bill 2024, specifically highlighting the proposed imposition of a Ksh.2 million penalty for non-compliance with the Electronic Tax Invoice Management System (eTIMS).
In a statement released on Monday, KNCCI President Erick Rutto expressed apprehension over the severity of the proposed penalty, particularly its potential impact on Micro, Small, and Medium Enterprises (MSMEs).
"We believe that the MSMEs are the backbone of our economy, contributing about 40% of GDP and employing more than 80% of Kenyans. The majority of them operate in the informal economy and have neither clearly understood nor adopted eTIMS," Rutto said.
He warned that the proposed penalty increment could result in job losses and diminished opportunities for many Kenyans.
In response to the looming penalty, KNCCI has urged policymakers to prioritize educating and assisting MSMEs in adopting the eTIMS system before implementing punitive measures.
As
discussions on the Finance Bill 2024 continue, stakeholders are advocating for
a balanced approach that promotes compliance while considering the unique
challenges faced by smaller enterprises in adopting new technologies and
regulatory frameworks
Kenya Chamber of Commerce Criticizes Proposed Penalty in Finance Bill 2024