Finance Bill: Experts warn proposed taxes to increase cost of living

Proposal to increase tax on motorcycles is likely to take centre stage as members of parliament debate the Finance Bill 2022.

National Treasury Cabinet Secretary Ukur Yatani proposed to increase excise duty charged on an imported motorcycle by 10% to Kshs. 13,403 from Kshs. 12, 185.

Over 1.2 million boda boda operators are also required to take insurance covers for pillions in the face of rising number of motorbike accidents.

Other popular products that have been slapped with higher taxes include cosmetic and beauty products, bottled water, chocolate and wines and spirits, with some businesses noting this is not the time to increase taxes as they are still reeling from the impact of the Covid-19 pandemic.

The proposed increases in taxes in the finance bill seek to raise an additional Kshs. 50.4 billion. The Finance and Planning Committee of the National Assembly chaired by Gladys Wanga has invited the public and tax experts to present their views during a three day sitting starting today.

Experts say if members of parliament approve the bill in its current form, it will raise the cost of production and further push up the cost of living.

All eyes will be on legislators to see how they will balance appeasing the electorate by  reducing the cost of living and raising additional cash to finance this year’s Kshs. 3.3 trillion budget.

  

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