The Cabinet Secretary for Treasury (“CS”) presented the budget statement for fiscal year 2018/2019 on 14 June, 2018 which focused on the four key strategic areas known as the “The Big Four Plan”. Under the Big Four Plan, the Government targets to boost manufacturing activities, enhance food and nutrition security, achieve universal health coverage and support the construction of at least 500,000 affordable houses by 2022.
In the budget statement the CS proposed a number of taxation measures to be introduced through Finance Bill 2018 that are intended to realize these objectives.
One of the key non-tax amendments that the CS proposed is the repeal of the Banking Act provisions that capped interest rates on loans issued by banks and also set a minimum interest rate for interest earning deposit accounts. The reasons given by the CS for repealing these provisions is that financial access and economic growth have been adversely impacted.
Click here to access our bulletin highlighting the key amendments proposed in the budget speech. The proposals may be varied by Finance Bill 2018 and we shall provide a further update on any additional changes made by the Finance Bill once it has been published.
If you would like advice or guidance on any particular aspect that affects your business, please do not hesitate to contact us.