If you think that your life is already hard and that your are already broke, then you are wrong. What you need to do is to prepare yourself because life is likely to be more harder if members of parliament will vote to approve the tax proposal memo from the president on the financial bill of 2018. There are many other commodities president Uhuru Kenyatta proposes additional taxes on but Kenyans are not aware of.
Lets look at those commodities one by one and how taxes is expected to go up on each.
So lets start with one of the most commodity in the country which is kerosene. With kerosene, president Uhuru Kenyatta is introducing Ksh. 18 tax per every litre of kerosene under the name adulteration tax. Kerosene currently retails at Ksh. 97.70 in Nairobi which factors in tth 165 VAT. Now with the new tax, that price is expected to go up from ksh. 97.70 to ksh. 112.15.
Mobile Airtime And Mobile Data.
Mobile data charges and mobile talk time services. Am sure most of the Kenyans have mobile phones and now as things does by, using your phone is now going to be expensive. Currently people have been complaining on how their airtime and data bundles are running out. This is even about to get more costly as the president proposes that the tax moves from the current 10% to 15%. This simply means that currently for every one Ksh. 100 you spent buying airtime or data bundles, ksh. 10 goes to tax but now if the president proposal is approved, for every Ksh. 100 you spent, Ksh. 15 goes to tax.
Mobile Money Cash Transfer e.g M-Pesa.
What the president want is you to pay more taxes to move money across mobile platforms like M-peasa, Airtel money and many more. In the 2018/2019 budget, the treasury cabinet secretary Henry Rotich had propose to increase the tax on mobile money cash transfer from the current 10% to 12% but then many people complained but now president Uhuru Kenyatta is proposing to increase this tax to a farther 20%.
For the betting lovers who normally bet on sportpesa and other betting sites, president Uhuru Kenyatta proposes that for every winning, you are required to pay a tax of 20%. This means if you win for example Ksh. 100,000 you will have to pay Ksh. 20,000 tax. Unlike before where you could take all your winnings. But as the president propose to tax the winnings.
The current budget proposes a housing tax of 1%. 0.5% contribution by the employer and 0.5% contribution by the employee but members shoot down the proposal. However, president Uhuru Kenyatta not only want this tax to stay but to increase this tax to 3%. 1.5% from the employer and 1.5% from the employee.
This is a bitter proposal for the chocolate lovers as the president proposes that for every kilo of chocolate you are going to buy, you will be required to pay tax of Ksh. 20. This simply means for every Ksh. 1000 you spent on chocolates, Ksh. 200 goes to taxes.
President Uhuru Kenyatta propose to increase bank fees from the current 10% to 20% on every transaction you make. This means for instant the normal Ksh. 30 you pay for ATM transaction, the government will take Ksh. 6 instead of Ksh. 3. This also means it will also affect bank revenues. And it is likely to be passed on to you and increase the amount you are charged on transaction.
So all those are alot of taxes you need to prepare yourselves for. That is what the president wants and his wish may just be your command if the national assembly gives the memo a green light as the government seeks to raise more money for the development agenda popularly known as BIG 4.