The Ayes have it! MPs authorise Uhuru to tax Kenyans more
1 months ago, 20 Sep 19:25
All of President Uhuru Kenyatta’s proposals to the Finance Bill, 2018 were on Thursday passed by the National Assembly in a special sitting marred by chaos.
In a memorandum outlining his reservations after rejecting the Finance Bill, 2018, President Kenyatta recommended that the proposed 16 per cent VAT on petroleum products be reduced to 8 per cent even as he suggested other controversial tax measures to raise more revenue.
Following the passing of the Bill together with the President’s memorandum, mobile phone subscribers are set to pay more for airtime and data services as the excise duty on airtime will be increased from 10 per cent to 15 per cent.
The cost of mobile money transfer services is also expected to rise after President Kenyatta proposed the excise duty on mobile money transfers be increased from 10 per cent to 20 per cent.
Salaried employees are also in for tougher times as President Kenyatta’s memorandum, which carried the day, contained a proposal to have workers contribute 1.5 per cent of their earnings to the National Housing Development Fund. This money will be channeled towards financing one of President Kenyatta’s development agenda on affordable housing.
The cost of internet is also expected to rise as internet bundles will now be hit with an excise tax of 20 per cent.
The President had also proposed to double the tax on cost of bank charges like ATM, account fees and over-the-counter withdrawals from 10 percent to 20 percent.
Kerosene users will also feel the pinch of the Finance Bill, 2018 as President Kenyatta recommended a special ‘anti-adulteration’ tax of Ksh.18 per litre be imposed on Kerosene importers.
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