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JUST IN: Gov’t Targets VAT Abuse in New Tax Crackdown Under Finance Bill 2025 

  The Kenya Kwanza administartion is taking a bold step to tighten its tax regime through the proposed Finance Bill 2025, aiming to curb abuse of VAT exemptions and zero-rating privileges. The government plans to empower the Kenya Revenue Authority (KRA) with greater oversight and recovery powers to track how tax-favoured goods and services are ultimately used. In a significant shift, the Bill introduces Section 66A to the VAT Act, allowing KRA to recover VAT from anyone who misuses goods or services initially acquired under exempt or zero-rated status. If enacted, the law will apply to individuals and businesses that import or purchase items like medical equipment, agricultural inputs, or educational
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