The Finance and Planning Committee has finished reviewing the controversial Finance Bill, 2023, ahead of its Presentation at the National Assembly on Tuesday.
On May 4, the National Treasury submitted the Bill to the National Assembly, prompting a strong reaction from both lawmakers and the public. The proposed taxes have met opposition from within the Parliament and outside. Several organisations including labour unions, business lobbyists, trade organisations and civil society organisations have asked for amendments to be made.
The bill contains several measures to increase revenue, including a housing levy on workers’ salaries, higher taxes on fuel, and new taxes on beauty products. President Ruto stated that the bill is essential to finance his administration’s initial budget of Sh3.59 trillion. After evaluating the proposed taxes, the Molo MP Kimani Kuria-led committee decided to retain the 16% Value Added Tax on petroleum products, which would bring the tax on petrol to the same rate as kerosene and diesel.
The Value Added Tax (VAT) was initially proposed at 16%, but it has not been altered to a lower percentage. One major amendment to the bill is the 15% for Digital Content Creators which has been reduced to 5%. This comes as a reprieve to young people who make money from digital content creation. Also, the proposed 3% housing levy has been decreased to 1.5%.
Ruto has employed imposters…
Ruto has employed imposters for economic advisors. No country has ever advanced with such high taxes on fuel. Who is going to tell them and will they listen?