14 Things: Ruto Targets Wigs, Fake Nails in ‘Shocking’ Budget

MH Reporter

The Treasury as today Thursday shared the the Finance Bill 2023. The bill which is expected to pass in Parliament details a wide range of issues.

Here are the key issues you need to know.

  1. Digital content creators (influencers) will now be subject to a 15% withholding tax on payments related to digital content monetization as per the 3rd Schedule of the Income Tax.
  2. VAT on exported services has been revised; Business Process Outsourcing services are now zero-rated, other services rendered exempt.
  1. Per diems for public and private servants will now be fully taxable as gains from employment.
  2. Ads related to betting, lotteries, or alcohol on print, TV, billboard, and radio to be subject to a 15% excise duty.
  3. Digital Assets­­ Tax has been introduced, targeting those who own platforms or facilitate the exchange or transfer of digital assets, including cryptocurrencies, token codes, non-fungible tokens, and other similar tokens.
  4. Individuals earning KES 500,000 or more per month will have their PAYE graduated to 35%.
  5. The National Treasury proposes to revise the turnover tax from 1% to 3% and change the band eligible for turnover tax from KES 1M – 50M to KES 500,000 – KES 15M.
  6. A 3% deduction of an individual’s basic salary will be directed towards the National Housing Development Fund, matched by a 3% contribution from the employer.
  7. The National Treasury proposes to do away with the annual inflation adjustment of excise tax.
  8. Treasury is proposing to have the requirement that betting firms remit excise taxes to KRA within 24 hours be anchored in law.
  9. Treasury proposing empowering KRA to require tax payers IN ANY SECTOR to remit excise duty collected on certain excisable services within 24 hours.
  10. A 5% excise duty will be levied on wigs, false beards, eyebrows, eyelashes, artificial nails, and human hair.
  11. Imported cell phones will attract a 10% excise duty.
  12. LPG gas and fertilizer exempted from VAT.