More pain as Uhuru targets M-Pesa, data bundles and betting wins
Kenyans should brace for hard times ahead should MPs back President Uhuru Kenyatta’s memorandum on the Finance Bill, 2018.
The president’s memo includes an array of new and higher levies which will see the introduction of a 15 per cent excise duty on telephone and internet data services.
In his proposed amendments, the President seeks Parliament’s approval for a 12 per cent in excise duty on fees charged for money transfer by mobile phone service providers.
To those who love to bet, the President proposes that all winnings be taxed. One will have to pay a 20% tax on all winnings unlike before when you went home with everything.
Taxes for betting firms will however reduce from 35 per cent to 15 per cent.
Household using kerosene will be hard hit with the introduction of an adulteration levy to harmonise the price of kerosene with that of diesel.
The levy shall be paid by the importer at the rate of Sh18 per litre of all illuminating kerosene imported into the country for home use in a move that will push the commodity’s retail price much closer to diesel.
The tax will lift kerosene price above Sh100 per litre mark for the first time and have it retail close to diesel and petrol, which are currently retailing at Sh115.4 and Sh125.5 per litre in Nairobi.
The amendments are due for a plenary discussion at the National Assembly on Thursday and are among those that MPs shot down in August.