A Breakdown of The Finance Bill 2023.
The Finance Bill 2023 was laid before the parliament by Treasury Cabinet Secretary Prof. Njuguna Ndung'u on 4th May, 2023.
It comes at a time when Kenya's economy is struggling to get back on its feet after the COVID-19 pandemic that left thousands of Kenyans jobless as a result of massive closure of companies and other businesses.
Prof. Ndung'u proposed changes to the Finance Bill with an aim to increase revenue worth 200 billion for the Government. The Bill seeks to amend various tax laws and duties including Income Tax Act, VAT Act, Excise Duty Act and Miscalleneous fees and Levies Act.
The Bill is currently in the first reading stage where the Finance and National Planning Committee has been receiving submissions of memoranda and holding public hearings. The committee has received a total of 1300 submissions of memoranda from stakeholders, Civil society groups and members of the public.
Chairman of the Finance and National Planning Committee of the National Assembly, Hon Kimani Kuria noted that the committee has received insightful suggestions and ideas from the submissions received from the stakeholders and civil society groups.
Key take away points in the Finance Bill include: 16% VAT on Petroleum products, 16% Insurance compensation, 3% Housing Fund deduction from both the employer and employee, 15% withholding tax on income generated by content creators, 20% Excise Duty on betting, gaming, prize competition and lottery, 5% Excise Duty on wigs, false beards, eyelashes and human hair, 15% Excise Duty on Print, TV, Billboard and Radio ads on betting, lotteries and alcohol and 35% PAYE to those earning 6 million a year(500,000 a month)
Kenya Private Sector Alliance (KEPSA) has warned that if the Finance Bill is passed 100, 000 jobs will be lost and 150 billion worth of losses incurred.
Kenya Association of Manufacturers (KAM), Chief Executive Officer, Anthony Mwangi argued that the cost of living is at an all time high and that the key focus should be on reducing the cost of commodities and sustaining the economy.