Safaricom says Finance Bill 2024 will have adverse effects on investment, Gov’t programmes
Kenya’s leading telco Safaricom, Amnesty
International and the Kenya Women Parliamentary Association are among entities
that have rejected Finance Bill, 2024, warning that its implementation will
have a negative impact on the economy.
The entities further cautioned against
increased taxation on essential goods and services stating that it will
increase the general cost of living and drive the country into an economic
crisis.
Safaricom is opposed to the proposed increase
of excise duty on internet data and mobile money transfer services provided by
banks and cellular phone services to 20 per cent, as contained in the Bill.
The
telco warned that the increase in operational costs will affect services such
as M-Pesa, Hustler Fund, Inua Jamii, online education through CBC and
international money transfers.
“The
cost of transactions will prevent ordinary wananchi from accessing crucial
services,” said a representative of the mobile network operator.
Safaricom
and other entities under Pricewaterhouse Coopers International Limited stated
that increasing excise duty on mobile money fees will slow down the expansion
of mobile money penetration in the economy, disadvantage low-income households
and lead to job losses derived from digital economy activities such as online
jobs and digital content creation.
“Further,
it will disadvantage low-income households creating hindrances in participating
in the digital economy,” added Safaricom.
The
Kenya Women's Parliamentary Association rejected the eco-levy, stating that it
would increase the cost of essential goods such as sanitary pads and baby
diapers by an extra Ksh.150 per kilo, which is already burdensome for
households from poor backgrounds and persons with disabilities.
“Ordinary
mwananchi can barely afford baby diapers and sanitary pads, this is a big blow
to ensuring that these essential products are provided to ordinary citizens,”
said Nominated Senator Gloria Orwoba.
Other
entities which presented their oral submissions before the National Assembly’s
Finance and Planning Committee including Amnesty International and Jumia raised
concerns about the introduction of the motor vehicle tax, the reclassification
of zero-rated supplies to exempt supplies, the introduction of excise duties on
specified goods such as vegetable oils at a rate of 25 per cent, and the
exemption from imports declaration fee and railway development levy of
products.
However,
youth lobby groups such as Youth Health Advocates and Kenya Muslims Women
Alliance supported the proposed taxation on wine, calling for an increase in
tax on beer, which they claim is currently cheap and easily accessible to
learners.
“Our
youth are getting lost due to alcohol…it’s cheap and readily accessible.
Increase tax on Ksh.33 per litre,” said Youth Health Advocates Harrison Ngang’a.
Friday’s session
marked the end of stakeholders’ engagement paving the way for Monday’s
mwananchi open conference at KICC.
Want to send us a story? SMS to 25170 or WhatsApp 0743570000 or Submit on Citizen Digital or email wananchi@royalmedia.co.ke
Comments
No comments yet.
Leave a Comment