Monday, May 8, 2023 – President William Ruto’s Chief Economic Advisor David Ndii has told off Kenyans opposing the Finance Bill 2023 which seeks to increase taxes to help Ruto finance his ambitious budget.
Speaking yesterday, Ndii defended the Finance Bill 2023, noting that it was drafted with expert analysis and consideration of external factors such as the International Monetary Fund (IMF).
“People with issues with the Finance Bill, sit down, write an alternative budget that cushions external shocks without the IMF, brings down the deficit with no tax measures. And do the numbers,” Ndii stated.
Dr. Ndii was responding to concerns raised after Treasury Cabinet Secretary Prof Njuguna Ndung’u, presented the Finance Bill 2023, which imposed some new taxes with relief to specific goods.
For instance, the 3% housing levy fund was criticized by lobby groups who questioned the criteria for selecting beneficiaries of the same housing project.
Activists argued that making the housing levy mandatory overburdens the workers who were already overburdened with new NSSF deductions, NHIF rates, and pay-as-you-earn (PAYE).
The new Bill proposes the introduction of a higher personal income tax rate of 35% on the income of individuals who earn Ksh500,000 per month and above.
If the Bill is passed, there will be an introduction of tax on digital assets – a new Digital Asset Tax is proposed at the rate of 3% and it will be applicable to the income derived from the transfer or exchange of digital assets.
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