Sharp Daily
No Result
View All Result
Sunday, September 14, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

eTIMS reforms: Relief proposed for small farmers and micro-businesses

Brian Murimi by Brian Murimi
June 19, 2024
in News
Reading Time: 2 mins read

The Finance and National Planning Departmental Committee has proposed exemptions for subsistence farmers and micro-enterprises with turnovers below one million shillings. This measure aims to mitigate the adverse economic impact on small-scale producers who have been excluded from formal business supply chains due to the stringent eTIMS requirements.

The Finance and National Planning Departmental Committee, chaired by Kuria Kimani, has highlighted substantial challenges in the rollout of the Electronic Tax Invoice System (eTIMS), particularly affecting small-scale farmers and micro-enterprises. The committee’s report, which scrutinizes the Finance Bill of 2024, underscores the deleterious effects of eTIMS on these groups, who find themselves unable to supply to formal businesses due to the system’s complexities.

“One of the biggest challenges is that the system has locked out these producers from supplying to formal businesses, which is deleterious for the economy at large,” the committee observed. This exclusion has significant ramifications, limiting market access for small producers and potentially stifling economic growth in the agricultural and informal sectors.

To rectify this, the committee has proposed exempting subsistence farmers and micro-enterprises with gross turnovers below one million shillings from the eTIMS requirements. This recommendation aims to re-integrate these small-scale producers into the formal economy, fostering inclusivity and economic resilience.

RELATEDPOSTS

KNCCI cautions against ‘punitive’ eTIMS fines for small Kenyan firms

May 20, 2024

Doctors in Kenya raise concerns over electronic tax management system

January 17, 2024

“The Committee further recommends the issuance of guidelines by the Kenya Revenue Authority (KRA) on the operationalization of this proposal,” the report stated. These guidelines are expected to provide a clear framework for implementing the exemptions, ensuring that the intended beneficiaries can navigate the tax system without undue burden.

The introduction of eTIMS was originally aimed at enhancing VAT collection and broadening the tax base. However, its implementation has faced criticism from various stakeholders who argue that the system’s complexity disproportionately affects smaller producers. By exempting those with lower turnovers, the committee seeks to balance the objectives of efficient tax collection and economic fairness.

This move has been welcomed by representatives of the affected sectors, who argue that the exemptions will provide much-needed relief. “Exempting small-scale farmers and micro-enterprises is a step in the right direction, acknowledging the unique challenges they face,” commented a stakeholder from the agricultural sector.

The committee’s report also notes the need for a simplified system that can still effectively collect taxes without relying solely on expanding the tax base through formalization. This balanced approach is expected to support Kenya’s broader economic goals while ensuring that smaller entities are not disproportionately disadvantaged.

The next steps will involve the Kenya Revenue Authority (KRA) formulating and publishing the necessary guidelines to operationalize these exemptions.

Previous Post

Finance committee opposes KRA’s access to personal data

Next Post

Effective strategies to minimize waste during construction projects

Brian Murimi

Brian Murimi

Brian Murimi is a journalist with major interests in covering tech, corporates, startups and business news. When he's not writing, you can find him gaming, watching football or sipping a nice cup of tea. Send tips via bireri@thesharpdaily.com

Related Posts

News

September snapshot: CMMF yields 13.12% as month unfolds

September 5, 2025
Private equity investment business concept
News

Private equity and insurance

September 4, 2025
News

Kick financial goals: Invest with CMMF this football season

August 22, 2025
commercial illustrator
News

Why Kenyan private equity firms should consider continuation funds as an exit strategy

July 23, 2025
Business

Del Monte foods files for bankruptcy in USA

July 3, 2025
News

Private vs Public Pension Funds in Kenya

June 30, 2025

LATEST STORIES

Real Estate project financing models shaping successful developments

September 12, 2025

Alternative investments: Opportunities and risks

September 12, 2025

Mid-September momentum: CMMF posts strong yields and growing trust

September 12, 2025

Unlocking Home Ownership Through Retirement Savings in Kenya

September 12, 2025

The role of FDIs in driving sustainable development

September 11, 2025

How increased oversight can clean up the insurance sector without stifling innovation

September 11, 2025

Why retail investors hold the key to Kenya’s capital market growth

September 11, 2025

Kenya’s new banking policies: A turning point for the financial sector

September 11, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024