The Finance Bill 2023’s proposed Housing Levy has ignited a furious controversy among the public and the opposition, stirring feelings of outrage and discontent.
In the name of building affordable housing, the Government has proposed an outrageous measure that would subject workers to an additional 3% tax on their hard-earned monthly salary, together with an equal payment from their employers.
While this contentious idea dominates public discourse, it conveniently ignores a number of other sections in the Finance Bill 2023 that could have significant ramifications. Sadly, these clauses have been eclipsed by the clamorous debate over the Housing Levy.
One of these sinister clauses calls for a dreadful rise in petrol prices, which might approach Ksh 210 if the Finance Bill 2023 is approved by parliament. The Value Added Tax (VAT) on fuel was decreased to 8% in 2018 as a relief measure for Kenyans, but this bill blatantly seeks to reverse that decision.
The VAT on petrol, however, will soar to a startling 16 percent if this plan is approved by Parliament.
As a result, depending on current pricing, the cost of petrol in the nation will increase by more than Ksh. 13 per litre.
The Finance Bill 2023 contains a number of suggestions that, if they are put into effect, will surely make already difficult financial circumstances for residents even worse.
proposed adjustments to the health sector’s VAT rates.