The National Treasury is banking on the proposed taxes, including 16 percent value added tax (VAT) on fuel and 10 percent excise duty on imported cellular phones to raise additional tax revenues amounting to Ksh289.3 billion ($2.09 billion) in the 2023/2024 fiscal year. But there is a public outcry over the prospects of worsening the high cost of living in the country and stifling economic recovery. Tax experts describe the tax proposals as “significant” to impact economic recovery, amid multiple shocks such as rising cost of living, depreciating shilling, high fuel and electricity prices and the country’s debt vulnerabilities. A new pay-as-you-earn tax band is coming, with a tax rate of 35 percent on employment income above Ksh6 million ($43,478.26) per annum. The government is to increase ordinary revenues by 17 percent to Ksh2.57 trillion ($18.62 billion) from Ksh2.19 trillion ($15.86 billion).

Source: Daily Nation June 04, 2023 01:08 UTC