The bill seeks an increase of excise duty from 15 to 20 per cent on cash transfer charged by banks, money transfer agencies and other financial service providers. “VAT could act as a barrier to inclusion by making basic financial services more expensive and less accessible to most Kenyans.”KBA said introducing VAT and excise duty increase would undermine efforts to bring more people into the formal financial system, “which is essential for economic growth and poverty reduction”. Mr Malonje said taxes would directly increase the cost of these services. “The introduction of VAT on forex transactions directly increases the cost of doing business for companies involved in international trade,” Mr Malonje said. “Businesses that import goods or services will bear higher costs rippled through the supply chain leading to higher prices for individual consumers.

Source: Daily Nation June 05, 2024 09:07 UTC