The Finance Act Will Do More Harm To Kenya Kwanza Than The Clueless CSs

By Juma / Published August 4, 2023 | 11:23 am




KEY POINTS

Already, Kenyans have been paying a 16 percent Value Added Tax on petroleum products. Retailers have reported that their sales have dropped by more than 50 percent since the Act was implemented despite a court order barring it then. This means less taxes than when the tax was at 8 percent.


KRA

In the thrilling saga of fiscal finagling, the Finance Act 2023 in Kenya has burst onto the scene like an unexpected plot twist in a blockbuster movie.

As citizens don their metaphorical detective hats and start scrutinizing their dwindling wallets, it’s clear that this Act has taken a page from the villain’s playbook, leaving Kenyans to grapple with a tale of taxation that would make even the most cunning swindler proud.

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Already, Kenyans have been paying a 16 percent Value Added Tax on petroleum products. Retailers have reported that their sales have dropped by more than 50 percent since the Act was implemented despite a court order barring it then. This means less taxes than when the tax was at 8 percent.

Finance Act is like a clandestine meeting of bureaucrats, shrouded in shadows, huddled around a table littered with spreadsheets and calculators. With a stroke of their pens, they conjured up a concoction that would make even the most stubborn of wallets crumble.

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But as the dust settles and the ink dries, it’s the ordinary citizens who find themselves at the center of this twisted plot. The heroes of this tale, the hardworking men and women of Kenya, suddenly find themselves grappling with the harsh reality of increased taxes.

It’s as if a mischievous genie has been let out of its bottle, wreaking havoc on savings accounts and household budgets across the land.

To make matters worse, the Kenya Revenue Authority (KRA), of course with the help of the government, has backdated most of the taxes to July 1, 2023. The 1.5 percent Housing Levy has been backdated, as well as the Paye As You Earn and the Turnover Tax.

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The hustlers are about to experience the following:

  1. The Vanishing Paycheck: As the taxman tightens his grip, Kenyan workers are left feeling like extras in a disappearing paycheck magic trick. With more money flying out of their accounts than ever before, it’s becoming increasingly difficult for individuals and families to make ends meet.
  2. The Entrepreneur’s Lament: Small business owners, once the unsung heroes of the economy, are now the protagonists in a tragic tale of diminishing returns. The increased tax burden leaves them with less capital to reinvest in their ventures, stunting growth and innovation in the process.
  3. The Great Consumer Conundrum: As prices of goods and services start resembling the Dow Jones on a wild day, consumers are left scratching their heads and counting their shillings before every purchase. That morning latte? Prepare for an impromptu budget meeting.
  4. The Elusive Economic Growth: With the Finance Act 2023 in play, it’s almost as if the economy itself has decided to take an extended sabbatical. The increased taxes put a stranglehold on investment and spending, leaving the much-anticipated economic growth dancing tantalizingly out of reach.
  5. The Brain Drain Boogie: Kenya’s best and brightest minds are eyeing the exit, performing an intricate dance known as the “brain drain boogie.” The increased tax burden, coupled with limited opportunities, has transformed this graceful exodus into a poignant display of talent flight.

No country has ever succeeded by overtaxing its poor populace. Maybe Kenya will be the first one. Let us put there our eyes and wait.

Related Content: People Who Become Temporarily Insane When They Get Money




About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

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