Mobile money service providers are set to pay higher taxes in the coming financial year if a proposal by Treasury Cabinet Secretary Henry Rotich in the Ksh3.074 Trillion 2018/2019 budget is approved.
CS Rotich, while reading the budget in Parliament, proposed to increase excise duty on mobile money transfer services from 10% to 12% to fund the government’s universal healthcare programme.
The Treasury CS also proposed a tax of 0.05 % on cash transfers of more than Ksh.500,000 between banks and other financial institutions.
The 2018/2019 budget of Ksh3.074 Trillion has grown by about 10.83 percent from the 2017/18 financial year which was Ksh2.77 Trillion.
CS Rotich has proposed to increase the excise duty from 20% to 30% for motor vehicles whose capacity exceeds 2500cc for diesel and 3000 cc for petrol powered vehicles.
Excise duty of Ksh.20 per Kg is also set to be imposed on sugar confectionaries and chocolates.
Companies in the betting, lottery and gaming sector will also be forced to pay a 20% penalty and 2% interest for delay in payment of taxes.