Monday, May 13, 2024 - Kenyans could be forced to dig deeper into their pockets starting from July 1st to make phone calls and pay for internet if the Finance Bill 2024 is passed as drafted by the National Treasury.
In the proposed amendment, the
National Treasury has proposed a hike in excise duty charged on telephone
and internet data services from 15 per cent to 20 per cent.
The bill has proposed the
deletion of the expression ‘the rate of fifteen per cent and replacing it with
the expression "rate of twenty per cent."
By hiking taxes for calls and
internet access, telecommunication companies could be forced to pass on the
extra costs to Kenyans.
The bill also proposed an
increase in excise duty for money transfers, Kenyans could therefore be forced
to fork out more to send money.
The latest development comes
amidst President William Ruto's ambitious target for digital infrastructure
with the Head of State championing nationwide free access to the
internet.
Access to the internet has been
at the forefront of the Head of State's drive to innovate and enhance mobile
phone services and ease operations for the self-employed.
According to statistics, there
were about 22.71 million internet users in Kenya at the start of 2024, when
internet penetration stood at 40.8 per cent.
It is not the first time
the government has proposed an increase in call and internet charges, in
the 2020/21 fiscal year, the government similarly proposed an increase in the
two services from 15 per cent to 20 per cent.
Other services that were
included in the hiked charges included Short Message Service charges.
Similarly in 2018, the
government increased call and internet charges from 10 per cent to 15 per cent.
The Kenyan DAILY POST
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