The government's proposal in the Finance Bill 2023 to tax digital content creators 15% is unfair, according to comedian Timothy Kimani alias Njugush.
Njugush contends that while it is the government's responsibility to collect income, effective arrangements that do not jeopardize the jobs of content providers are required.
In an interview with Hot 96 FM on Monday, the comedian debunked the myth that content creators have unlimited funds, claiming that many had resorted to crowdfunding on social media when in need.
"When the president said Butita and I earned more than him, I knew there was a problem, a narrative he sold about how much money content creators make." However, some content providers and I observed Jalang'o claim that many of us are showing off automobiles. Still, he didn't mention that many of us are posting pay bills for Maisha imewaendea mrama," he said.
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According to Njugush, while content creation appears lucrative, the government attempts to oversell the narrative to extract more money from internet artists.
He also mentioned that some digital content providers make content for fun and not for profit, and he wondered if they would be required to file returns at the end of every year in such cases.
"Tax kulipa ni wajibu ya kila mtu and we must do that for the country to grow, but my problem is that these are the same people who promised us Kamarini stadium for six months for six months mpaka miaka kumi ikapita na kamarini stadium bado haijakuja yet they will go and tax mtu akishinda huko nje,"
If lawmakers enact the digital content production tax, revenue received through digital monetization will be subject to a 15% withholding tax, much higher than the 5% rate for professional services.
