Kenya plans on increasing taxes on mobile money transfer services as the country makes efforts to increase its revenue base.
The new proposed tax hikes will also affect other money transfer services. They were contained in documents sent to parliament this month.
Kenya’s Parliament will debate and vote on the new proposals on Thursday. The government is struggling to raise revenue while not hurting the poor.
Reuters is reporting about documents it has sighted on the new proposed tax hikes. The document shows that Kenya’s President Uhuru Kenyatta wants mobile money transfer fees increased from 10 percent to 12 percent.
The new tax hikes are part of measures the government intends putting in place to fund many of its developmental projects.
Priority is to be given to providing universal healthcare and affordable housing.
There are already concerns about taxes placed on petroleum products.Some lawmakers and Kenyans have called for reduction on taxes on fuel.
Although Kenyatta says the taxes are needed, last week he said he wanted to cut tax on fuel to 8 percent from 16 percent.
Source: Africafeeds.com
