What’s this weird ‘Robin Hood Tax’ which Rotich has introduced?
The Sh3 trillion government budget which was read by National Treasury Cabinet Secretary Henry Rotich on Thursday at Parliament Buildings gave Kenyans no reasons to celebrate.
The proposed revenue enhancements to meet the government’s huge expenditures has added an extra burden to the already heavily taxed Kenyan tax payer.
Among the newly introduced taxes is one going by the odd name of ‘Robin Hood Tax’ which will require Kenyans who withdraws any amounts of Sh500,000 or more transferred through banks or other financial situations pay 0.05 percent.
In his speech at Parliament Buildings, Rotich said the Kenyan economy has a well-established financial sector in the region with significant sums of money transferred.
“In order for the government to get a fair share of revenue from this financial activities and to finance critical government programmes, I propose to introduce a Robin Hood Tax of 0.5 percent on any amounts of five hundred thousand shillings or more transferred through banks and other institutions,” Mr Rotich said in his budget speech.
He also announced that he had increased excise duty on mobile money transfers by two percent, meaning that Kenyans pay more for any transaction they make on the mobile phones starting next month.
“I have increased excise duty fees changed on money transfer services by cellular phones service providers from 10% to 12%. The revenue realized from these measures shall be used to fund Universal Health care,” Rotich said.