Kenyans to Feel the Pinch as MPs Okay President Uhuru's Proposals to Increase Taxes

Members of Parliament on Thursday passed all President Uhuru Kenyatta’s proposals to the Finance Bill 2018 in a special sitting marred by chaos.

Passage of the bill means that Kenyans will now have to dig deeper into their pockets to finance the ambitious Sh2.9 trillion 2018/2019 financial year budget. 

In a memorandum sent to the National Assembly after rejecting the Finance Bill 2018, the President proposed 16 per cent Value Added Tax (VAT) on fuel be reduced to 8 per cent. President Kenyatta further suggested other tax measures to raise more revenue.

Following MPs approval to the president's memorandum, mobile phone users will pay more for airtime as excise duty on airtime will be increased to 15 per cent from 10.

Further, the cost of mobile cash transfer services will rise after President Kenyatta proposed the excise duty be raised from 10 per cent to 20 per cent.

Salaried employees will also face tougher times as they will now contribute 1.5 per cent of their pay to the National Housing Development Fund. The cash raised will be used to finance one of President Kenyatta's Big Four agenda - affordable housing.

The cost of internet will shoot upwards as a 20 per cent excise duty has been imposed on internet data packages.

Kenyatta also suggested tax on cost of bank charges including ATM, account fees and over-the-counter withdrawals be doubled from 10 percent to 20 percent.

Kenyans using kerosene will also feel the pinch as the President recommended an 'anti-adulteration’ tax of Sh18 per litre be imposed on Kerosene importers.

Chaos and shouting rocked the special sitting at the National Assembly as MPs opposed to President Kenyatta's memorandum protested its approval.