Kenyans should expect to pay more for their services by online businesses such as Uber and Netflix starting from January 1, 2021.

This is because the government will be levying a 1.5% taxation on the gross sales of those and similar businesses.

As a consequence, these business are more likely to hike their average charges so as to include the taxation fees.

This news follows President Uhuru Kenyatta’s assent to the 2020 Finance Bill on Tuesday June 30.

Another passed tax proposal set to take effect at the same time is the raise of the upper limit of residential income tax paid by landlords from Ksh 10 million to Ksh 15 million.

However, some taxation exercises are effective immediately as from the start of the new financial year.

FILE PHOTO | President Uhuru Kenyatta signs into law the Supplementary Appropriation Bill on June 18, 2019. PHOTO | PSCU
FILE PHOTO | President Uhuru Kenyatta signs into law the Supplementary Appropriation Bill on June 18, 2019. PHOTO | PSCU

For instance, excise duty charged on beer and spirits by alcohol strength from over 10 percent to six percent has been lowered.

Whereas, this might be exciting news, some of these products will instead witness a hike  in prices.

The bill is expected to earn the government an additional Ksh 38.9 billion in new tax revenues to help steer the economy’s budget of Ksh. 2.79 trillion in the 2020-2021 financial year.

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