Aston Lukoye
- Former Prime Minister Raila Odinga has vowed to oppose the proposed financial bill terming it as punitive to Kenyans.
Odinga has termed William Ruto’s lead Kenya Kwanza as a regime that is burdening Kenyans with a Tsunami of taxes. He says his team will ensure the bill does not pass.
Raila Odinga’s disassociation
“The proposed Finance Bill by the Kenya Kwanza Regime is a punishing burden on Kenyans. The tsunami of taxes will suffocate the jobless youth and the poor. We strongly oppose this anti-people budget and will ensure it doesn’t pass. If it does, we disassociate ourselves from it.” reads Raila Odinga’s tweet.
The proposed Finance Bill by the Kenya Kwanza Regime is a punishing burden on Kenyans. The tsunami of taxes will suffocate the jobless youth and the poor.
We strongly oppose this anti-people budget and will ensure it doesn't pass. If it does, we disassociate ourselves from it. pic.twitter.com/08ekkEZ5Zk
— Raila Odinga (@RailaOdinga) May 8, 2023
The National Treasury has presented the Finance Bill, 2023, to the National Assembly for review and approval of the Finance Act.
The Finance Act is a law that enacts the fiscal policies proposed by the government as part of the annual budgetary process.
Although the bill has not been officially released, the current version being circulated among industry stakeholders proposes various significant changes.
These include the introduction of a higher personal income tax rate of 35% on individuals earning above KES 6,000,000 per year, a decrease in the non-resident corporate tax rate from 37.5% to 30% from January 2024, and the imposition of taxes on repatriated profits of branch/permanent establishments.
Amendments
Moreover, the bill suggests amendments to the EBITDA-based limitation of interest expenses, the taxation of ESOP benefits for start-up employees, and the withholding tax.
It also proposes the introduction of a tax on digital assets, investment allowance deductions, and the restriction of accelerated capital allowance.
Lastly, the bill suggests changes to the capital gains tax, the reintroduction of the VAT exemption for exported services, and the exemption of business transfers as going concerns from VAT.
