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On May 5th, 2023, The National Treasury submitted The Finance Bill 2023 to the National Assembly for consideration and enactment into the Finance Act.
The Bill comes months after a lot of speculations by taxpayers lobbying for bonuses associated with speeches full of promises from the Kenya Kwanza government.
The 2023 Finance Bill now seeks to amend various laws relating to levies, taxes, and duties, with a goal of increasing government revenues from taxes collected, in order to meet demands of the Kenya Kwanza manifestos, with an aim to stabilize the shaky economy of the nation.
Some of the tax proposals in The Finance Bill 2023.
- 3% levy on basic salary towards National Housing Development Fund to be matched by employers. There are four exit routes after 7 years upon retirement, whichever comes first.
- Graduated 35% PAYE to employees earning more than Ksh.500,000.
- Betting firms to remit excise taxes to the Kenya Revenue Authority (KRA) within 24 hours, a proposal to amend the 3rd schedule of the Income Tax Act.
- Wigs, human hair, false beards, eyebrows, and eyelashes are to be subjected to a 5% excise duty.
- Individuals or entities with disputes with KRA at the Tax Appeal Tribunal are to deposit 20% of the disputed amount with KRA as the matter is being resolved.
- Digital content creators are to be subjected to a withholding tax of 15% of all content that they monetize.
- Exchange of any digital assets including cryptocurrency, token code, and Non-Fungible Tokens (NFTs) will be subjected to the new digital tax.
- The National Treasury proposes to do away with the annual inflation adjustment of excise tax by replacing section 10 of the Excise Duty Act.
- LPG and Fertilizer are now VAT-exempt.
President William Ruto also made a quest to reinstate the unpopular fuel tax, igniting the storm. The tax is expected to rise from the current 8% to 16%, with 100% proliferation.
Read: Not even a comma will be amended in Finance Bill 2023 – Cherargei
Comments and remarks on The Finance Bill 2023.
A few hours after the release of the proposed financial bill, members of the public joined forces with Azimio la Umoja leader Raila Odinga and the public sector unions, in opposing the Finance Bill. A Bill which is shortlisted with a series of increased taxes and levies.
However, Chief government economist David Ndii, who chairs President Ruto’s Council of Economic Advisers, shuttered critics who are opposing the Finance Bill, insisting that through the government’s profligacy, employment for citizens is created.
Many pontificating here about cutting government spending seem oblivious that government spending, useful and wasteful, is a third of the economy. Cut that drastically and many of them will be jobless e.g stop wasteful seminars, several hotels, travel biz, bars will close.
Kenyans have issues with lies in the Finance Bill. If you want money to cushion against external shocks, just plainly say so. Don’t conceal it in fictitious, unfeasible initiatives like housing funds. Tell Kenyans the truth, it shall set you free.”
Mr. Ndii, through his Twitter page, went on asking people having issues with the Finance Bill to get down and draft an alternative budget.
People with issues with the Finance Bill (should) sit down, write an alternative budget that cushions external shocks without the IMF, and brings down the deficit with no tax measures. And do the numbers. As Sam Rayburn said ‘Any jackass can kick down a barn but it takes a carpenter to build one.” Possed David Ndii.
Read: Proposed Finance Bill 2023 In A Stalemate.
On May 8, 2023, Azimio la Umoja One Kenya coalition party released a statement, mentioning the proposed Finance Bill 2023 by President William Ruto’s administration as a punishment for Kenyans.
While releasing the statement, opposition chief Raila Odinga also said that Azimio will struggle to make sure that the budget is not passed in National Assembly.
