Roads and Transport Cabinet Secretary Kipchumba Murkomen has opposed introducing taxes in the electric transport sector as proposed in the Finance Bill, 2024. The Bill proposes various changes to the incentives introduced under Finance Act, 2023, including removing the tax incentives on electric vehicles (EVs). It proposes that the supply of electric bicycles, solar and lithium-ion batteries and electric buses of tariff heading 87.02, which are currently zero-rated would be subjected to Value Added Tax (VAT) of 16 per cent He said the government intends to adopt policies that will foster a more conducive business environment for e-mobility companies. Mr Murkomen said unbridled taxation on electric vehicles can hinder their adoption for several reasons, including becoming a cost barrier, incentive reduction, environmental impact, technological progress and market growth. The CS said to achieve the current government’s agenda on e-mobility, President William Ruto during his recent State visit to the US outlined the commitment by his administration to eliminate all taxes and duties applicable to the first 100,000 EVs in Kenya. According to Mr Murkomen, the incentives for the electric mobility sector introduced in 2023, through the Finance Act to incentivise green energy use in the Transport Sector have increased the uptake of EVs with numerous start-ups setting up in Kenya. https://www.standardmedia.co.ke/business/business/article/2001497055/murkomen-opposes-evs-tax-plan-says-it-will-reverse-gains