There are some taxes that were once levied but as it stands today, they are no longer being levied. What are some of these taxes and what could possibly been the cause of their removal?

Capital Gains Tax (CGT)

Capital gains tax was suspended in Kenya since 14 June 1985. Capital gains tax is tax levied on profit realised after the sale of a non-inventory asset that was bought at a lower price. The most common capital gains are realised from sale of stocks, bonds, minerals and property. Kisuu said the current tax structure and administration couldn’t substantially grow revenue yields.

Withholding VAT

The removal of Withholding VAT took effect in July 2011, though now the government is considering bringing it back. Withholding VAT is a system which involves the declaration of VAT by both the supplier and his customer who has been appointed as a withholding VAT Agent. Institutions appointed as withholding VAT Agents are Government institutions, parastatals, banks, financial institutions, Co-operative Societies, Insurance companies and regular exporters.

[Read: Withholding VAT Could Be Coming Back]

Advance Tax

Advance tax is Section 12A of the Income Tax Act (Cap 470) was introduced by the Finance Act. 1995, and came into force with effect from 1st January 1996. It provided for the payment of a tax 'to be known as Advance Tax', in respect of commercial vehicles that are licensed to operate on Kenyan roads. However, today advance tax on PSV drivers/conductors has since been removed, and is also not applicable on trailers and  tractors for agricultural use.

Customs duty

Customs duty has been removed on:

• Parent stock for chicken breeding

•Flat rolled products of iron and non alloy steel coated or plated with tin

•Flat rolled products of iron or non-alloy  steel used for manufacture of filters and  bottle tops

•Petroleum coke used in the production of  cement

•Prepared driers and pigments used for the  manufacture of paints

•Lamps and bulbs using LED technology

•Duty on all industrial inputs used in the manufacture of goods which are duty free