Digital ride-hailing platforms Bolt and Uber have warned that they would be forced to close down their operations in Kenya if Parliament approves proposals to impose a six percent tax on gross turnover for non-resident firms. Bolt and Uber separately told the National Assembly’s Finance and Planning Committee that imposing the Significant Economic Presence Tax (SEP) will likely lead to collapse of the industry due to losses or low margins. “SEP tax at six percent will likely lead to collapse of the industry due to losses or low margins. She told the committee that, when a similar SEP tax was introduced in Nigeria, several multinational companies including Microsoft, GlaxoSmithKline, and Uniliver left the country. “Taxation on digital services in Kenya is still nascent and the increase in rate from 1.5 percent to six percent is too steep.

Source: Daily Nation June 06, 2024 13:31 UTC