2018/2019 budget losers

Written By: Samson Kitavi
719

2018/2019 budget losers
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This year’s budget seems to have targeted both the rich and poor after review of taxes affecting both.

While presenting this year’s budget, Treasury Cabinet Secretary Henry Rotich increased excise duty on mobile money transfer service from 10 to 12 percent which could mainly affect those relying on mobile money.

In addition, users of second hand clothes and shoes, who are considered poor, should expect to get poorer following an increase on duty.

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The rich who mainly import fuel guzzlers have been slapped with a higher import duty of 30 percent, up from the current 20 percent for second hand vehicles with an engine capacity of more than 2,500 cc.

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CS Rotich is now banking on the custom and excise duty to partly finance the ambitious Ksh 3.07 trillion 2018/19 budget.

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Those likely to feel the heat of the budget proposal are the dealers and customers of the imported second hand clothes and shoes after the cabinet secretary increased custom duty from 25 to 35%.

Importers of iron and steel, paper products and cheap timber are not spared either. The custom duty on the products has been increased to a maximum of 35%.

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The gambling and betting businesses were also on the chopping board of Rotich’s budget with penalties and interest on late payment of gaming tax.

The Cabinet Secretary however made a quick about turn on the proposed 35% on income tax for high income earners with a monthly income of at least 750,000 shillings after it became unpopular.

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