David Ndii tells off Finance Bill critics
Written by Inka FM on 8 May 2023
President William Ruto’s economic advisor David Ndii has told off Kenyans criticising the Finance Bill 2023.
The bill has received heavy criticism from Kenyans over the proposed increment in a number of taxes, with a majority feeling that Kenyans are already overtaxed.
“People with issues with Finance Bill, sit down, write an alternative budget that cushions external shocks without IMF, brings down deficit with no tax measures. And do the numbers. As Sam Rayburn said “Any jackass can kick down a barn but it takes a carpenter to build one.”,” Ndii stated.
Finance Bill proposals
Among the changes proposed in the Finance Bill 2023 include an amendment to the Employment Act of 2007 to require employers to contribute to the National Housing Development Fund for each of their employees.
In the amendment, employers will now have to pay three percent of their employees’ monthly basic salary to the Fund, and employees will also be required to contribute three percent of their monthly basic salary.
Also, if the Bill is passed into law, all civil servants will be required to pay taxes on per diems.
The Bill proposes that if you earn more than Ksh500,000 per month, then your marginal PAYE tax rate should move from 30% to 35%. This will see Kenyans earning Ksh500,000 pay Ksh175,000 in PAYE to the government.
The Finance Bill seeks to have turnover tax for businesses with revenues from as low as Ksh500,000 increased from 1 per cent to 3 per cent.
“Section 12C of the Income Tax Act is amended in subsection (1), by deleting the words “Ksh1 million but does not exceed or is not expected to exceed Ksh50 million” and substituting therefore “Ksh500,000 but does not exceed or is not expected to exceed Ksh15 million,” the Bill proposes.
If a taxpayer disputes a tax assessment by the KRA and appeals to the Tax Appeals Tribunal, they need to deposit 20% of the disputed tax.
Wigs, human hair, false beards, eyebrows and eyelashes will now be subject to 5% excise duty if the Bill becomes law.