Connect with us

Hi, what are you looking for?

COURTESY

Kenya

Kenyans to pay more for airtime and cooking gas, but less on betting

NAIROBI, Kenya, Jul 2- Kenyans will now pay more for airtime as well as cooking gas but less for betting after Treasury Cabinet Secretary Ukur Yatani gazetted the Finance Act, 2021 days after assent by President Uhuru Kenyatta.

The ascending of the law by the head of state means that the Kenya Revenue Authority can now collect the duties from the sectors going forward.

According to the gazette notice, some sections of the new law get into effect at the start of July 2021 while others will begin in January 1, 2022.

“This Act may be cited as the Finance Act, 2021, and shall come into operation, or be deemed to have come into operation, as follows— (a) sections 9, 10, 13, 14, 19, 21(a), 21(b), 21(e), 40, 50, 58, 60, 73, 75, and 76, on the 1st January, 2022,” read the notice.

The Financial Act of 2021 introduces amendments to various tax-related Acts of Parliament (Income tax, VAT, Exercise Duty, Tax Procedures and Miscellaneous fees and Levies) as well as other related statutes in the public finance sector including the Insurance Act, the Capital Markets Act, the Retirements Benefits Act, the Central Depositories Act, and the Stamp Duty Act.

The lawmakers had increased excise duty on airtime and mobile data from 15 to 20 percent, which will see the treasury raise nearly Sh8 billion from Safaricom, Airtel, and Telkom Kenya.

The price of cooking gas is also expected to rise as a 16 percent value-added tax on the commodity comes into effect.

At the same time, the MPs opted to chop 20 percent tax on winnings from gambling to 7.5 percent which the State had earlier published at end of April through the Finance Bill, 2021.

The new tax measures add to the already rising tax regime in the country as the government aims to raise monies locally in order to fund Sh3.6 trillion budget, for the financial year 2021/2022.

Advertisement. Scroll to continue reading.

The Kenya Revenue Authority is expected to collect at least Sh1.8 trillion in the new financial year up from a target of Sh1.6 trillion last year.

 

2 Comments
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...