The burden of heavy taxation on Kenyans is about to if MPs vote to pass the new proposals made by Uhuru Kenyatta on the Finance Bill 2018.
Among the proposal’s by Uhuru is to have a 15 percent exercise duty charged on telephone and internet data services. This is in addition to the 12 percent exercise duty that was imposed on mobile money transfers to the outcry of wananchi.
The president also wants banks and other financial institutions to be charged a 20 percent exercise duty of on fees charged for money transfers.
All salaried employees in the formal sector will also be expected to contribute 1.5 percent of their basic salary towards the National Housing Development Fund to help fund Uhuru’s Big Four Agenda on housing.
Employers will also be expected to contribute a similar percentage.
According to Uhuru, who rejected the amendments on the finance bill 2018, that was recently passed by the National assembly, seeking to extend the 16 percent fuel tax, said there is a Sh 67.5 billion funding gap, which would majorly paralysis the government’s operations.
Uhuru has however proposed that the 16 percent tax on petroleum products be reduced to 8 percent.
UHURU PROPOSES BUDGET CUTS
The president further proposed a budget cut of Sh 55 billion, which will affect some services and most infrastructure developments.
Parliament is still divided over the Finance Bill amendments with the majority opposing the fuel levy and yesterday as the national assembly speaker Justin Muturi presented the president’s memorandum, MPs chanted “zero tax” in the house.
Parliament will vote tomorrow on Uhuru’s proposal’s and the country is waiting anxiously to see if the MPs will stand with wananchi or do as the head of state says.