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The government is set to introduce taxation on airtime received by Kenyan workers from their
employers beginning August 1st, 2018, in a new Bill published by Treasury Cabinet Secretary Henry Rotich.
The new taxes will also be imposed on allowances offered to employees including house, meals, car and other allowances, reports The Standard.
"If you receive airtime that is above Sh3,000, that will be taxed," a Kenya Revenue Authority (KRA) official told the paper.
Further, the government will also take up 12.7% of every mobile cash transfer transaction, a blow to ordinary Kenyans who are the major users of the service.
The KRA official said the government has marked airtime as one of the key taxable "non-cash benefits" and every allowance that exceeds Sh3,000 mark will be taxed.
The development comes in the wake of increased excise duty on beer, cigarettes, fruit juices, bottled water, and motorcycles.
"This change is effective August 1, 2018, and it applies to the above excisable products delivered from manufacturing facilities from that date."
"In addition, all imports of excisable goods cleared for home use from that date shall attract new excise duty rates," a memo by PricewaterhouseCoopers to its clients read in part.
The increased and new taxes will not, however, apply to petroleum products.
"Petroleum products, which also attract excise duty at specific rates, have not been affected by the adjustment. This could be due to the anticipated increase in price due to the introduction of VAT in September 2018 with the expiry of the transitional VAT exemption," the memo stated.
Comments
Jameni! Nilipokuwa Kenya, niliona ya kwamba maisha Nairobi yako juu kuliko katika mji ninamoishi Marekani! Sijui watu wanaishije katika mji wa Nairobi!
You. why move Aden Mohammed..Mt. Kenya corruption eating..Real rotten people.
That arrogant asshole Munyua deserves nothing..His people are most arrogant and evil human can see.
This is turning out to be the most unimaginative adminstration ever. Taxing Kenyans to the high heavens (or is it hell?). Kumira kumira was a really bad idea...
He he he, Choices indeed do have consequences. Wacha serikali ikule, maybe next time Kenyans will use their heads while voting instead of their tribe. It is just a matter of time before China starts taking Kenya's assets like Mombasa port for non payment of loans while Ruto is just buying choppers.... Kumira Kumira my friends, these are the results.
maze wanainchi wataumia na taxes na bado zinaporwa na same leaders...
voting cannot change anyone life in Africa after all.....only rising up and say no...this is the way we want to be governed.......
ati srikal ya vinjana...io ilikuwa fake...
So the government want us to pay for their mistakes
HAS ANY ONE EVER BOTHERED TO CALCULATE THE CUMULATIVE TAX RATE IMPOSED ON POOR KENYANS BY THIS GREEDY GOVERNMENT AS OF TO DATE?