President Uhuru Kenyatta of Kenya, on Friday, signed the Finance Bill into law with an 8 per cent Value Added Tax (VAT) on fuel.
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.
I have signed into law the Finance Bill 2018. I give my commitment that I will ensure proper utilisation of public resources for a better Kenya. I will not relent on the war against Corruption. @WilliamsRuto pic.twitter.com/oDPNc8ElVG
— Uhuru Kenyatta (@UKenyatta) September 21, 2018
If one is 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 one’s salary – a fraction of the 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.
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 the phone will cost more. Sweet toothed citizens will also be affected by the finance bill as 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. Standard Media
Uhuru is a disgrace to kenya independence fighters in the name of development ..we dont need your big four anymore. wacha tukae na our natural big 5 they provide us peace and comfort
Amount of money Kenya spends servicing debt:
2019/20? 1 kidney per person
Finance Bill 2018
— Jacob Mugendi (@mugendij) September 21, 2018