Kenyans are prepared for a financial blow as the government proposes new taxes in the 2023 Finance Bill. While the planned taxes are meant to broaden the country’s tax base and increase money for the government, they may wind up burdening the citizens.
One of the most contentious suggestions is a 5% excise levy on wigs, fake beards, eyebrows, and eyelashes, as well as artificial nails. Many Kenyan women rely on these goods as part of their beauty regimen, and the added tax may make them expensive.
Furthermore, the government is considering imposing a 10% excise fee on imported cellular phones, which might make it more difficult for low-income Kenyans to get crucial communication tools.
A 15% excise levy on imported paints, varnishes, and lacquers is also planned, which might raise the cost of house repairs and upkeep for many Kenyan people.
Another contentious suggestion is to impose a Digital Assets Tax on anybody who operates a platform that trade or transfer of digital assets. Digital assets like crypto currencies have become popular in Kenya during the last few years.
Kenyans trading cryptocurrencies will be obliged to pay a 3% tax on the amount they make from selling digital assets under the proposed legislation.
The proposed adjustments to the turnover tax bracket may have a substantial impact on Kenyan small company owners. Businesses having a turnover of up to Sh1 million are now eligible for turnover tax, but this threshold would be decreased to Sh500,000 under the proposed revisions. This implies that many small firms may have to pay greater taxes, putting a burden on their budget.
The planned levies, however, will raise the price of necessities like food and clothing, making it more challenging for many Kenyans to make ends meet.
