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Tax For Cashless Transactions, Kerosene To Go Up In Uhuru Suggestions

[PHOTO/ COURTESY]

In the memorandum on the Finance Bill, 2018, President Uhuru Kenyatta suggested that cashless/mobile money transfers excise duty be increased from 12 per cent to 20 per cent, a 66 per cent increase.

“Excise duty on fees charged for money transfer services by banks, money transfer agencies and other financial service providers shall be 20 per cent of their excisable value,” said the President in the memorandum.

President Kenyatta also suggested that taxation imposed to betting firms be reduced from 35 per cent to 15 per cent, whilst all winnings for gamblers be slashed by 20 per cent in terms of taxes.

Household using kerosene will be hard hit with the introduction of an adulteration levy to harmonise the price of kerosene with that of diesel.

Read: SIM Card Hawkers To Pay Ksh500,000 In Fines Or Face One Year Jail Term

The levy shall be paid by the importer at the rate of Sh18 per litre of all illuminating kerosene imported into the country for home use in a move that will push the commodity’s retail price much closer to diesel.

Also, the President suggests Housing Development Fund tax to be paid by the employee at 1.5 per cent and employer at 1.5 per cent of the monthly basic salary. Penalty of 5 per ceny for employer who fail to submit the contributions.

President Kenyatta also proposes telephone and internet data services excise duty at 15 per cent of excisable value up from current 10 per cent.

He also suggests a Ksh20 levy per kilogram of all sugar confectioneries including white chocolate.

The amendments are due for a plenary discussion at the National Assembly on Thursday and are among those that MPs shot down in August.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email francis@kahawatungu.com

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