Parliament’s Finance Committee proposed a reduction in the tax on digital content creators from 15% to 5%
President William Ruto has beat a tactical retreat and ordered a review of a section of the Finance Bill 2023, proposing a reduction in the tax on digital content creators from 15% to 5%. This comes after the Finance Committee of the National Assembly recommended the change, which was subsequently adopted by the members of the Departmental Committee on Finance and Planning.
The bill originally suggested a 15% withholding tax on income generated through digital content monetization, significantly higher than the current 5% rate paid by content creators. However, the new proposed bill expands the scope of digital content monetization to include various sources of revenue such as advertisements on websites, social media platforms, brand sponsorships, and affiliate marketing.
Earlier, the Committee also reduced the proposed housing levy, previously set at three per cent of pay, which was halved to 1.5 per cent. The decision to revise this percentage in the Finance Bill 2023 was a direct response to the strong opposition expressed by Kenyans.
President Ruto’s United Democratic Alliance (UDA) party took to Twitter to announce the reduction in the Housing Fund contribution, stating, “The Housing Fund contribution has been reduced to 1.5% from the proposed 3%. Ruto listens.”
Throughout the legislative process, the National Assembly Finance Committee has actively sought input from stakeholders on various aspects of the bill. The clause pertaining to the housing levy has garnered significant attention and sparked substantial debate among the public.
Email your news TIPS to Editor@nairobilawmonthly.com, and to advertise with us, call +254715061658 anytime of the day
