The 2022/2023 budget has come with a raft of tax measures that are geared towards promoting the growth of industries and new investments, with president Kenyatta Uhuru’s Big 4 agenda spilling into the next government’s tenure, for the financial year starting July 1.
However, Treasury Cabinet Secretary Ukur Yatani in the coming fiscal year as he presented last budget that totaled to Sh.3.3 trillion, among the losers of this year’s budget include the boda boda and three-wheeler owners and operators, whom Yatani proposed must have insurance covers for themselves and their passengers.
The CS also went hard on the gambling and alcoholic beverages sectors, terming them as hazardous habits.
Yatani introduced a 15 percent excise duty on the revenue paid for the running of a gambling or alcoholic drink advert.
“To discourage the promotion of these products and these activities, I propose 15 percent excise duty on fees charged by TV stations, print media, billboards and radio stations for the advertisement of these activities,” the CS stated.
Manufacturers and consumers of liquid nicotine also face higher costs after the government increased the levy imposed on the product to Sh70 per millilitre.
The proposal has been attributed to rising road accidents and fatalities involving the operators.
Other losers rounding off the budget statement include taxpayers involved in tax disputes with the Kenya Revenue Authority (KRA), soon to be Kenya Revenue Services.
Such taxpayers will be required to deposit 50 percent of the disputed tax revenue in a special account at the CBK when the Tax Appeals Tribunal (TAT) makes a ruling in favour of KRA even if the taxpayer appeals such a decision.
The amount is, however, to be reimbursed should such a taxpayer win the appeal.