PricewaterhouseCoopers (PwC) has noted that the proposed Finance Bill 2023 will lead to a higher cost of living.
The multinational company noted that the Bill comes when the economy is recovering slowly from the impact of the Covid-19 pandemic.
PwC Associate Director Edna Gitachu says the government is targeting critical services such as M-Pesa charges and telephony service, which will increase from 12 to 15 per cent.
“This is not the first time that we are seeing this proposal. A number of proposals have been rejected but have found themselves in this new bill,” Gitachu said.
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Githachu added that the proposed bill is a one-sided proposal and is very cumbersome to taxpayers.
PwC observed that the bill goes against Kenya Kwanza’s promise of cushioning those in the lower cadre of the economy.
Further, the company added that passing the law could make Kenya less attractive as a business hub.
The government has tabled a bill before the National Assembly to raise taxes as the administration targets to raise Kes3.6 trillion for the financial year 2023–24.
The bill also proposes a raft of taxes that will have a major impact on Kenya’s digital content creators and owners of platforms that facilitate the trading of digital assets.
The proposal includes a 15 per cent withholding tax on payments related to monetising digital content, which will significantly impact the thousands of young people living in the digital space.
Also, any person who receives rental income on behalf of the premises owner shall deduct tax and, within 24 hours, remit the amount to the taxman.
Public sector trade unions have already threatened to call for industrial action should the proposed taxation in the Finance Bill be enacted into law.
