This archive report was first published on 30 June 2021.
As the country prepares for a tough economic setting, President Uhuru Kenyatta holds the key to the enforcement of new taxes that could make bank loans, Internet access, and mobile phone calls costlier from tomorrow.
On June 30, 2021, MPs introduced the new taxes in the government-backed Finance Bill, which has been forwarded to State House for approval.
The proposed taxes include a 20% excise duty on airtime and data, which will see the Treasury raise at least Sh8 billion from Safaricom, Airtel, and Telkom Kenya.
However, the proposal was not part of the original Finance Bill, and it remains to be seen whether the President will back the airtime tax.
Parliament also rejected the Treasury's proposal to change the way tax on bread is calculated, which would have seen bakers stopped from seeking refunds from raw materials such as electricity that attract VAT.
With the 2021-22 financial year's budget expected to cement the legacy of Mr. Kenyatta's 10 years in office, the President's decision on the new taxes will have a significant impact on the country's economy.
Business Daily
