Kenya's Media Owners Association (MOA) has spoken against the draft Finance Bill 2023, calling for its repeal.
On Tuesday, MOA informed the National Assembly Finance and Planning Committee that the proposed 15% excise charge on advertisements would be disastrous for the economy since it would hike advertising prices for affected businesses.
Alcohol ads, betting, gaming, lotteries, and prize competitions are all targeted by the proposed excise charge.
The media business is likewise opposed to the 15% withholding tax for digital content creators, alleging that it undermines the government's agenda by inhibiting creative sector growth and creating unemployment through layoffs.
Other repercussions, they say, include denying the general public access to information and news, as well as increasing administrative burdens if individuals are obliged to withhold tax on modest and frequent subscriptions.
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They want the planned charge cut from 15% to 5%, with commercials, sponsorship, affiliate marketing, and subscription services exemptions.
MOA believes that the 5% withholding tax on sales promotions, marketing, and advertising services will cause cash flow issues for SMEs due to tied-up working capital.
According to them, the idea will discourage SMEs from paying for tiny advertisements (losing titles, ads, warnings, and obituaries).
"It costs between Ksh.300 and Ksh.2000 to place an obituary advertisement in a newspaper." With this in mind, the imposition of the suggested tax on such little sums is extremely extravagant, and quite unfair to the common mwananchi, who is already experiencing falling income levels," according to a portion of the submission.
Concerning the disputed Housing Fund levy, the MOA claims that it will result in employment losses and suggests that it be voluntary and exclude employers.
Today, Wednesday, is the ninth day of a public involvement exercise for the proposed Bill, with 90 comments expected.
So far, 151 interest groups have submitted memoranda to the committee, with 1,400 filed by email.
On June 15, the budget will be presented to Parliament.
