What you need to know:
- The memorandum proposed a deletion of 0.05 percent “Robin Hood” tax regime, which had been proposed on the money transfers of at least Sh500,000.
- The government plans to recoup the lost revenue through the 20 percent imposed on the charges banks levy on customers in money transfers, meaning that the transfer charges could still go up.
President Kenyatta has signed into law Finance Bill 2018, which was passed by the National Assembly in a chaotic debate on Thursday.
In a Twitter post on Friday, Mr Kenyatta, who whipped Jubilee MPs to ensure the bill that raises the cost of living is passed, vowed to ensure proper use of public funds.
“I give my commitment that I will ensure proper utilisation of public resources for a better Kenya. I will not relent on the war against Corruption,” he said.
The House on Thursday endorsed the presidential reservations on the bill, giving Mr Kenyatta the chance to raid Kenyans' pockets to plug holes in his nearly Sh3-trillion budget.
With the victory, the Executive has the power to raise up to Sh130 billion through the eight percent levy on fuel products that will see about Sh17.5 billion realised from sugar confectioneries (Sh475 million), money transfers (Sh11.4 billion), betting companies and winners (Sh30 billion), housing fund (10 billion) and kerosene (Sh9.8 billion).
The memorandum proposed a deletion of 0.05 percent “Robin Hood” tax regime, which had been proposed on the money transfers of at least Sh500,000.
The government plans to recoup the lost revenue through the 20 percent imposed on the charges banks levy on customers in money transfers, meaning that the transfer charges could still go up.
There is also a new proposal to increase the price of kerosene by Sh18 a litre to check against adulteration, as well as split the current 35 percent tax on betting companies to include the winners.
This targets to raise Sh9.8 billion.
Betting companies will be charged 15 percent on top of the 30 percent they pay on corporate income, while the winners will have to surrender 20 percent of their winnings to the State.
Mr Kenyatta also signed into law the Coast Guard Bill 2018, which marks an important milestone in the management and enforcement of laws in Kenya’s internal and territorial waters.
The Coast Guard Act 2018 establishes the Kenya Coast Guard Service, which will be responsible for enforcing maritime security and safety, pollution control and sanitation measures as well as prosecution of offenders.
The Coast Guard Service will also be responsible for port and coastal security, search and rescue, and the protection of maritime resources including fisheries.
The two Bills were presented to President Kenyatta for signing by National Assembly Speaker Justin Muturi.
Present during the signing at State House, Nairobi, were Deputy President William Ruto, National Assembly Majority Leader Aden Duale and Head of Public Service Joseph Kinyua.
Others were National Treasury Cabinet Secretary Henry Rotich, Attorney-General Paul Kihara Kariuki, Principal Secretary Kamau Thugge and Solicitor General Kennedy Ogeto.
Additional report by PSCU.