President Uhuru Kenyatta’s signature on the Finance Bill on Friday not only turns it into law but also spells doom for the Kenyan Citizen. With most Kenyans living from hand to mouth, an 8 per cent Value Added Tax (VAT) on fuel will only make life harder.
The Finance Bill 2018, which was an issue of contention among the Members of Parliament, was passed on Thursday. The President’s proposition on the bill recommended for a reduction of VAT from 16 to 8 per cent on petroleum products and many other changes on other taxes.
After Uhuru assented to the bill, the Energy Regulatory Commission (ERC) released new pump prices. In Nairobi, super petrol costs will drop from Sh127.8 per litre to Sh116.79 while diesel prices will drop from sh115 to sh108.12 and kerosene will retail at 108.41.
If you are earning a salary of over Sh100,000 in Kenya, the signing of the Finance Bill into law means that 1.5 per cent will be deducted from your salary – a fraction of your monthly salary will be cut to fund a housing project that is part of the government’s big 4 agenda,
Uhuru also recommended that there be a 15 per cent excise duty on phone and internet data- this means that making calls and browsing on your phone will be at a higher price.
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The excise duty on mobile money transactions will increase from 10 per cent to 20 per cent-this means that receiving and sending of cash through your phone will cost you more.
Sweet toothed citizens will also be affected by the finance bill – there will be a 20 per cent tax on confectionary sugar products such as sweets, chocolates and chewing gum.
According to the Government, all these taxes are meant to seal the gap created by the ever-rising Government expenditure and decreasing revenues.
This has elicited a lot of reactions on social media platforms with Kenyans venting out their frustrations:
I can't wrap my head around this holier than thou rhetoric that you are capitalizing on. Please tell me that your choice of leadership would have done better. Cz this is a case of the pot calling the kettle black. The same leaders you voted for were also involved yesterday.
— Ken (@Harsh_araki) September 21, 2018
This is a clear picture of the type of leaders we have, they only present their interest rather the interests of the people — Richard Murigi (@murigi_richard) September 21, 2018
