Kenyans Angered By 1.5% Tax Imposed On Digital Businesses

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On Thursday afternoon the Treasury CS read the much-awaited tax to the public. The budget proposal has however elicited mixed reaction from Kenyans, with many expecting it would make life a bit favorable.

While some citizens believe the estimates will trickle down to the ordinary mwananchi, others believe it had no tangible benefit for Wanjiku.

One of the proposals that have brought a strong reaction from Kenyans is the digital tax. Most Kenyans have lamented how the tax will impact their online businesses.

Most of the frustrations from the proposal as most Kenyans have moved to the digital platform to conduct their businesses and to carry ou their daily jobs.

Ever since the Covid-19 case was first announced most Kenyans have moved to work from home to keep up with the government regulations to decrease the social distance as a way to prevent the spread of coronavirus.

Most business and organizations sent their staff to work from home as a way to minimize social gatherings and encourage social distancing as required by the ministry of health. 

Young people also use online platforms to earn from digital marketing, academic writing, academic learning and training, and video games programming.

The move by the government to impose digital tax will, therefore, impact many people within society.

Some Kenyans, however, supported the move by the government while others did not buy it at all.

Those who agreed urged that the move will open a broad tax base and will allow everyone to pay tax without leaving any Kenyan behind.

“Widening tax collection base ain’t a bad idea. For the longest, those in employment or regulated businesses have borne the burden. Let everyone pay tax if they want services, even peeps in Kirinyaga road. Bur corruption has to stop,” One Michael Hinga said.

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Kenyans who are against the move said the tax will not only kill their livelihood but also scare away the investors from the country.

One Tom Muema said, “Its simple logic, lower taxes, improve the business environment. More investors will be very happy doing business in Kenya. Youths will get employment and pay taxes. KRA can’t meet it’s targeted when businesses are closing shops daily due to the dubious taxation.”

Hilda Osike said on her twitter wall,” Is this the final nail? Looking for all the ways to cripple the youth and anyone else who depends on the online platforms to earn a living.

Some Kenyans though had themselves to blame for the perceived taxing policy imposed by the government.

One Wisdom Industry said, “High tax is the price you pay for voting in tribal and corruptions over competent leaders. We (Kenyans) are not victims but accomplices.”

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