- The user also stated that the bill seeks to profile all unregistered marriages as illegal and a crime that could see one jailed or fined.
- However, the fact-checking desk has established that this is not true as there’s no Marriage Tax Act in the Finance Bill 2023.
Tiktok video implying that the Kenya Kwanza government is set to introduce a Marriage Tax Act, in 2023 is misleading.
The video posted by an individual under the username @aliroz89 stated that under the act, families will have to pay Sh1,800 for every child per year and a compulsory Sh 3,600 for the annual renewal of the marriage certificate.
The user also stated that the bill seeks to profile all unregistered marriages as illegal and a crime that could see one jailed or fined.
However, the fact-checking desk has established that this is not true as there’s no Marriage Tax Act in the Finance Bill 2023.
On 28 April 2023, the National Treasury submitted the Finance Bill, 2023 to the National Assembly for consideration and enactment into the Finance Act.
The 2023 Finance Bill seeks to amend various laws relating to taxes and duties with the goal of increasing government revenues from taxes collected.
The Acts listed for amendment under the Finance bill include Income Tax Act (ITA), VAT Act, 2013 (VAT Act), Excise Duty Act, Tax Procedures Act, 2015 (TPA), and Miscellaneous Fees and Levies Act.
The Bill also provides for amendments to other non-tax statutes.
Below is an outline of the key changes proposed in the Bill which is currently under consideration in the National Assembly.
Changes in personal income tax rates
There is a proposal to introduce a higher personal income tax rate of 35% on the income of individuals which is above Sh 6,000,000 per year or Sh 500,000 per month).
3% housing levy deductions
The Bill proposes to introduce a new statutory deduction into the National Housing Development Fund at three per cent of gross earnings.
The new statutory deduction is expected to further eat into employees’ net take-home pay.
The Housing Ministry is expected to create criteria for persons qualifying for affordable housing and who will employ their deductions to fund their home ownership quest.
Persons who fail to fall in the criteria will receive reimbursements at the end of seven years or may choose to pass on the benefit to a person qualifying for the cheap housing plan.
VAT on petroleum products-
The Bill has proposed that VAT on petroleum products be applied at 16 percent from the current rate of eight percent.
The proposal is expected to have a profound effect on the cost of petroleum products in the country and would likely push up the prices above the current historical highs.
On the contrary, the supply of LPG would fall in the tax-exempt category removing it from the current vatable status.
The proposal will in effect lower the cost of LPG making it more affordable to Kenyans.
VAT exemptions- diagnostic, laboratory reagents, vaccines for human and veterinary medicine, aircraft and spacecraft parts.
VAT on insurance compensation The Bill proposes to introduce VAT on insurance compensation in relation to assets on which input vat had been claimed.
Miscellaneous Fees & Levies Act Import declaration fee- The bill has proposed to revise the import declaration fee from 3.5 to 2.5 percent.
The move is deemed as a stimulant to local manufacturing by reducing the cost of inputs imported to the country.
Railway Development Levy - The bill has also proposed to lower the RDL from 3.5 to 2.5 percent in a move seen as an additional cushion to local manufacturing.
Remittance of Excise dutyThe bill seeks to empower KRA to obligate certain firms in certain industries to pay excise instantaneously.
Players in the betting and gaming industry are for instance required to remit excise taxes within 24 hours.
Cosmetics- Human hair, wigs, false beards, eyebrows, eyelashes and artificial nails will also begin attracting excise duty at the rate of five percent.
Other new excisable goods added include; imported fish at Sh100,000 per metric ton or 20 percent, powdered juice (20 percent) and imported cement (10 percent of the value or Sh1.50 per kilogram)