Nairobi Securities Exchange. CGT will be replaced by a 0.3 per cent levy. PHOTO | FILE
What you need to know:
The tax will be replaced by a 0.3 per cent levy.
The Finance, Trade and Planning Committee had an easy time convincing the handful of members who turned up to process the Finance Bill 2015, which went through the third and final reading on Thursday.
Lobbying by stockbrokers to scrap the Capital Gain Tax on shares sale got the nod of MPs after the National Assembly voted to cut the charge on Thursday.
The tax will be replaced by a 0.3 per cent levy.
Stockbrokers have been at loggerheads with the government over their role in the collection of the tax.
The Finance, Trade and Planning Committee had an easy time convincing the handful of members who turned up to process the Finance Bill 2015, which went through the third and final reading on Thursday.
“Last year, we introduced the Capital Gains Tax and it was found that it is very difficult to implement,” said Finance committee chairman Benjamin Lang’at.
He said after deliberations and studying what is done in South Africa, Nigeria and Egypt, the team realised that the Nairobi Stock Exchange “is very expensive.”
The move was supported by MPs Nicolas Gumbo, Dennis Waweru and Jakoyo Midiwo.
“Capital Gains Tax was more of a sentimental than economic undertaking that could have led to the quick onset of a bear run at the bourse,” said Mr Gumbo, who is also the chairman of the Public Accounts Committee.
