New Taxes Hit Goods & M-Pesa
Not only salaried employees will face the wrath of the Kenya Revenue Authority (KRA) as the government implements the taxation measures contained in the Finance Act of 2023.
All other tax measures enacted by the KRA will increase the cost of doing business for businesses, individuals, and corporations, leading to an increase in the price of consumer products.
In a punitive move, the authority is determined to collect taxes at the new rates retroactive to July, even though a court order temporarily halted the implementation of the new tax regime.
Small enterprises and large corporations will shoulder the cost of the new 3% Turnover Tax. The tax collector will still compel businesses to pay the July taxes that were not collected.
Manufacturers will pass on the increased cost of doing business caused by the increase in excise tax to consumers.
Powdered juice consumers will have to reach deeper into their pockets to purchase their favorite beverage, as the price per kilogram has increased by Ksh.25.
This is a result of its declassification from the ‘plastic’ class of commodities, which previously qualified for an Excise Tax refund.
ALSO READ: Kenya Kwanza Team Invited by Azimio for Monday Talks
As a result of the increase in Excise Duty to 15%, millions of Kenyans who use mobile money services will also pay more for these services.
The tax rate on fees levied for financial services has also been increased to 15%. This is a decrease from the previous rate of 20%, so fees for money transfers within a commercial bank will decrease.
The KRA Domestic Department’s document also affects the taxation of betting, gaming, lotteries, and price competition, which has been assessed a 12.5% Excise Duty.
A 15% Excise Duty will be imposed on advertising fees for alcoholic beverages, gambling, gaming, lotteries, and prize competitions on television, print media, billboards, and radio.
Importers of chocolate and other foods containing cocoa, plastic, fish, sugar, paints, and powdered juice are anticipated to raise the prices of these products to recoup the cost of import certificates, which they are required to acquire to conduct business.
New Taxes Hit Goods & M-Pesa