Latest and breaking news.


Thursday, 20 September 2018

Here is how the tax Bill passed will directly affect kenyans

check out a range of taxes introduced by Uhuru. What worries many is that the same taxes will be looted by Uhuru’s friends just like they have done in NYS, Ministry of Health, Kenya Power, Kenya Pipeline corporation etc etc
1. Poor families will feel the brunt of the new tax measures after the President proposed to charge importers Sh18 for every litre of kerosene, a revision from an earlier proposal by Treasury that stood at Sh10 per litre. Cries in the rural areas as Uhuru increases the tax on kerosene, making cooking and lighting for millions of poor rural folk an expensive affair.
2. Definition of betting winnings to include the full payment without subtracting the expenses of the winner. Winnings to be taxed at 20%
3. Reduction of petroleum VAT from 16% to 8% and its implementation date changed from September 2020 to September 2018. Calculation of VAT not to include excise duty, fees and other charges.
4. Motor Vehicle Excise Duty of between 20% and 30%
5. Sugar confectioneries including white chocolate at Sh 20 per kg. Sweets, chewing gums, juices and chocolates and other confectionaries will be slapped with an excise duty of Sh20 per kilo. MPs had proposed to do away with this levy in the Finance Bill, 2018.
6. Telephone and internet data services excise duty at 15% of excisable value (up from current 10%). Internet bundles will now be hit with an excise tax of 20 per cent. Time spent on Facebook, Whatsapp or Twitter will be more precious, as tax changes will see the cost of Internet bundles go up.
7. Money transfer services fees Excise duty at 20% of excisable value (up from current 10%);Sending money via mobile money transfer service (MPESA/AIRTEL MONEY etc) will be more expensive. Uhuru proposes a hefty 15 per cent excise duty up from 10 per cent. It will also be painful withdrawing cash from an ATM, transferring money from your bank account into your mobile money wallet or just depositing a banker’s cheque for your child’s school fees after the Government proposed doubling taxes on all bank as well as mobile money transactions.
8. Other fees charged by financial institutions Excise duty at 20% of excisable value (up from current 10%)
9. Reduction of lotteries, betting and gaming taxes from 35% to 15%
10. Housing Development Fund tax to be paid by the employee at 1.5% and employer at 1.5% of the monthly basic salary. Penalty of 5% for employer who fail to submit the contributions. Employers will be required to match their employees’ contributions by also contributing 1.5 per cent to the new kitty.

Via kenya today

No comments:

Post a Comment