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Other countries tax their citizens more than Kenya – Khalwale

Kakamega Senator Boni Khalwale has claimed that other countries tax their people more than Kenya.

Speaking during an interview with Citizen TV on Thursday, Khalwale said many Kenyan foreign donors tax their citizens more.

“Even countries like Japan, Finland tax their people more than us,” he said.

The senator added that the United States has an admirable taxation rate and good governance.

“Let’s tone down on sensationalising this matter and approach Kenyans with facts,” Khalwale said.

His comment comes days after the National Treasury tabled the Finance Bill 2023 in Parliament.

The bill outlines the various revenue-raising measures by the government to finance the 2023-24 budget.

Nandi Senator Samson Cherargei said not even a coma will be amended on the Finance Bill, adding that the country will either borrow more or raise its own revenue through taxation.

“On the Finance Bill 2023 the decision to pass by Parliament is NOT optional,” he said.

The state also wants tax added on eyelashes, switches and other beauty products including artificial nails.

The Bill further proposes a 3 per cent deduction on basic salaries towards the National Housing Development Fund, adding that employers will have to match with another 3 per cent.

“Those that are not eligible for the affordable housing programme will have to accrue their savings over seven years, after which their first deductions will be given to them or upon retirement, whichever comes first,” the bill reads.

Other notable proposals include taxing employees’ per diem, also known as cash allowance.

This means Treasury CS Njuguna Ndung’u has proposed the amendment of section 5 of the Income Tax Act.

The Treasury also proposed an amendment to the Employment Act to provide a 35 per cent income tax on all monthly salaries above Sh500,000 and a proposal to slap a 10 per cent Excise Duty on fish imports which could hike prices.

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