Friday, June 14, 2024 - Treasury Cabinet Secretary Njuguna Ndung'u has dismissed claims that many companies were closing down and investors fleeing the country due to heavy taxes imposed by President William Ruto’s government.
While addressing the media
yesterday, the CS described the concerns as hearsay and political agenda.
He maintained that the taxation
among industries was balanced and would not cause the investors to relocate to
other countries.
According to the CS, Kenya is
still not at a point where taxes can force companies out of the Kenyan
market.
"There is nothing like
closing up or relocating. This is a political agenda. Everywhere you go, we try
to balance out policies so that nobody feels disadvantaged. That is hearsay.”
"In Kenya, we have not
raised taxes to the point that firms can close down. I have been living in this
country, I have done most of the policy work in my own individual
capacity," he stated.
The CS made the remarks after
companies, especially manufacturers, warned that the tax proposals in the
Finance Bill 2024 would increase the cost of doing business.
Some companies noted that they
would be seeking to relocate to other countries where taxation was
fairer.
The Finance Bill 2024 is seeking
to introduce taxes such as the Eco Levy, and the 2.5 per cent Motor Vehicle Tax
among others.
Coupled with existing taxes such
as the Housing Levy, companies will be spending more money to pay taxes, a move
that could see some of them reduce their workforce.
The Kenyan DAILY POST
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