While some Kenyans might have sighed in relief at the scrapping of a few tax proposals by President William Ruto’s administration, there are still some hefty changes coming that might make your wallet feel lighter. Here’s a breakdown of the main tax proposals retained in the Finance Bill 2024, with a special focus on the betting tax hike.
For those who enjoy a flutter, there’s some tough news. The Finance Bill 2024 proposes an increase in the excise duty charged on betting. This move is part of a broader effort to boost government revenue. While the exact increase hasn’t been detailed yet, it’s clear that the government is targeting the betting industry for additional funds.
Road Maintenance Levy Goes Up
If you drive, this one’s for you. The road maintenance levy is set to increase from Sh18 to Sh25. Transport CS Kipchumba Murkomen pushed for this hike, arguing that more funds are needed to keep our ever-expanding road network in good shape.
“Delayed maintenance is adversely impacting road conditions, a pattern that is projected to accelerate unless resolved,” Murkomen said. He pointed out that since the last adjustment in 2016, the length of paved roads has jumped from 16,600 kilometres to 25,411 kilometres. So, brace yourselves for higher fuel costs, as this levy aims to gather an extra Sh115 billion for road repairs and maintenance.
Import Declaration Fee Hits Higher
Next on the list is the Import Declaration Fee (IDF), which is going back up from 2.5% to 3.5%. This might not sound like a big deal, but it affects the price of everything from food to clothing. The fee had been reduced last year, but the government is keen to claw back the Sh10 billion it lost from that reduction.
Committee Chair Kuria Kimani noted, “The proposed increase of IDF to 3.5 per cent would help restore the performance of this tax head in line with projected budget estimates for the 2025/25 Financial Year.”
The eco levy on imported finished products isn’t going anywhere either. This means products like sanitary towels and pads are going to stay pricey. The committee is keen to keep this tax to encourage local production and reduce waste from imports.
Excise Duties on Everyday Goods
Importers of everyday goods like eggs, onions, and potatoes are also in for a rough ride with new excise duties. With onion prices already sky-high, this additional tax will likely make these staples even more expensive for the average Kenyan.
The Road Development Levy (RDL) is also set to rise from its current 2.5%. This extra cash is earmarked for the development of an electric light rail system, which sounds great in theory but might sting a bit in practice.
More Taxes on Imports
Finally, there’s a proposed tax hike on the importation of various goods under the Export and Investment Promotion Levy. This includes items like leather products, ceramic sinks, washbasins, imported footwear, and denatured ethyl alcohol. If you’re planning on any home improvements or stocking up on imported goods, you might want to do it sooner rather than later.
So, while some tax proposals were scrapped, it looks like there are still plenty of changes coming that will affect the everyday Kenyan. Whether it’s filling up your car, shopping for groceries, or placing a bet, expect to feel these changes in your daily life. The betting tax hike, in particular, is set to make waves in the gambling community, pushing both casual and serious punters to rethink their strategies.
