Comedian Eric Omondi leads protest outside parliament against High cost of living

#OccupyParliament

Kenyans have taken to the streets today in protest against the proposed Finance Bill 2024, which key among other things proposes the introduction of additional taxes such as the digital tax and motor vehicle taxes.

The citizens, who are marching under the #OccupyParliament and #RejectFinanceBill2024 are calling on the Members of Parliament to shoot down the controversial Bill. The demonstrations are happening across Nairobi’s Central Business District (CBD) with the protestors aiming to camp outside Parliament.

Police officers some of whom are clad in plain clothes have however arrested the peaceful Protestors in the CBD.

Kenya’s Finance Bill 2024 has been a topic of much debate. Here’s a simplified explanation of its main points and why it is controversial:

Tax Increases: The bill proposes higher taxes on various goods and services. This includes raising the Value Added Tax (VAT) on some products such as bread, sugar and cooking oil and increasing taxes on fuels like petrol and diesel.

The Finance Bill 2024 also proposes an Eco Levy on locally manufactured products like sanitary towels, diapers, phones, computers, tyres, and motorcycles

These tax hikes are seen as a way to increase government revenue but are unpopular because they can lead to higher costs for consumers.

Housing Levy: One of the most debated parts of the bill is the introduction of a new housing levy. This is a mandatory contribution that employees and employers would need to make to fund affordable housing projects. Critics argue that it is an additional financial burden on workers and businesses.

Digital Services Tax: The bill includes a tax on digital services, targeting companies that provide online services like streaming or e-commerce. This aims to ensure that digital businesses pay their fair share of taxes, but there are concerns it could increase the cost of these services.

Small Business Taxation: There are changes to how small businesses are taxed, including the introduction of a turnover tax for businesses with annual sales below a certain threshold. This is intended to broaden the tax base, but small business owners worry it could impact their profits.

Personal Income Tax: The bill suggests changes to personal income tax rates, which might increase the amount of tax paid by individuals, especially higher earners. This is controversial because it affects disposable income.

Social Welfare Levies: The introduction of levies to fund social welfare programs is another significant aspect. While these are meant to support vulnerable populations, they are seen as adding more financial pressure on the working population.

Regulation and Compliance: The bill proposes stricter regulations and penalties for tax evasion. This is generally positive but can be seen as burdensome by businesses due to increased compliance costs.