The Finance Bill 2024 Is Incoherent, Repugnant To Reason, And An Indictment Of A Government Unable To Think Beyond The Greed Of Its Officials

The moment a leader loses his value for humanity, he loses his significance. This is the case with the current President who has become a narcissist per excellence. His leadership is transactional. No value. No empathy. No purpose. He was just addressing their insatiable and unbridled greed. I wrote about this here; https://sokodirectory.com/2023/07/rutos-leadership-style-has-given-birth-to-transactional-democracy-which-has-given-the-crime-syndicate-an-opportunity-to-govern-kenya/ and I was spot on because a year down the line, I have been vindicated.

Octavia E. Butler, in his famed Parable of the Talents, stated clearly and without any doubt that we must Choose our leaders with wisdom and forethought. That to be led by a coward is to be controlled by all that the coward fears. That to be led by a fool is to be led by the opportunists who control the fool. That to be led by a thief is to offer up your most precious treasures to be stolen. To be led by a liar is to ask to be told lies. To be led by a tyrant is to sell yourself and those you love into slavery. Octavia was simply talking about Ruto and his cabal of incompetent repugnant officials who have no empathy and common sense at all.

The tax proposals in the Finance Bill 2024 are punitive. They are evil. They are inconsiderate. They are the gateway to budgeted corruption. This morning I listened to the Chair of the Finance Committee and the MP for Molo and his reasoning was so repugnant and archaic that a child in baby class would reason better. With such leaders, who are led by greed and an insatiable appetite for power, Kenya will not be a country worth mentioning in a few months.

I want to take this opportunity to breakdown for you all the tax proposals in the Finance Bill 2024 in a fair, objective, and coherent manner so that you can see just how screwed we are with this cabal of greedy incompetent, and morally challenged politicians in Kenya Kwanza, not to mention their inability to think because of their myopic academic challenges. Indeed, we are in a quandary.

Read Also: Dear Mr. William Ruto, Si Heri Utunyonge Basi

The Tax Proposals;

The Tax Proposals in the Finance Bill 2024, Kenya are as follows;

Income Tax

1. Increase the top personal income tax rate to 35% for income above KES 6,000,000 per year.
2. Introduction of a 20% tax on income from digital marketplaces for non-residents and 5% for residents.
3. Introduction of a significant economic presence tax at 30%.
4. Minimum top-up tax for multinational groups at 15%.
5. Taxation of income from family trusts.
6. Taxation of repatriated income for non-residents with permanent establishments in Kenya.
7. Digital asset tax at 3% on the transfer or exchange of digital assets.
8. Capital gains tax on indirect transfers of shares in foreign entities.

Value-Added Tax (VAT)

1. Increase in VAT on petroleum products from 8% to 16%.
2. VAT on betting, gaming, and lottery services at 16%.
3. Deletion of VAT exemptions for certain financial services (e.g., credit/debit cards, foreign exchange transactions).
4. Exemption of LPG from VAT.
5. VAT on compensation for loss related to taxable supplies.
6. Increase of VAT registration threshold from KES 5 million to KES 8 million.
7. Imposition of VAT at 16% on various goods and services, including specific tourism and healthcare construction services.

Excise Duty

1. Excise duty on human hair, artificial nails, wigs, and false beards at 5%.
2. Excise duty on imported mobile phones at 10%.
3. Excise duty on imported paint and varnishes at 15%.
4. Excise duty on imported furniture at 30%.
5. Excise duty on alcoholic beverages, cigarettes, tobacco, and sugar-containing products.

Turnover Tax

1. Increase in turnover tax rate from 1% to 3% for SMEs with a turnover between KES 500,000 and KES 15 million.

Other Proposals