The Kenya Information Communication Technology Action Network (KITCTANet) comprising over 50 organisations in the private sector has asked the government to facilitate Kenyans to access government websites and eCitizen at the most affordable rates possible.
In its submission opposing the Finance Bill 2024, the network requested the government to work with service providers to zero-rate internet and data bundles for Kenyans browsing key sites that offer critical citizen services.
"The convenience fee of Ksh50 charged to access eCitizen services online should be prorated to match the value of the service being paid for, up to a maximum amount of Ksh50," reads part of the proposal.
KICTANET was offering alternatives to the bill's proposal to increase the rate of excise duty on telephone and internet data services from 15 per cent to 20 per cent, fees for mobile money transfer from 15 per cent to 20 per cent and fees for advertisements from 15 per cent to 20 per cent.
According to the network, this increase would result in the cost of making phone calls and buying internet bundles shooting up.
This, the organisation argued will mainly affect the poor and low-income earners who rely on these services.
Also, the increase was projected to culminate in high fees for money transfer services and mobile money transfers. The experts also forecasted that such a move would also result in increased costs of getting digital financial services.
"Ultimately, the increased cost could be counter-productive and result in reduced collection of taxes from these platforms," the network added.
Another proposal fronted by KICTANET was that the taxes should be reduced from the current 15 per cent to 10 per cent. This is to promote digital and financial inclusion as well as encourage the public to use the internet and digital financial services.
The government was also asked only to amend the taxes after three years to ensure predictability and promote financial and digital inclusion.
"That should they (the taxes) be retained at 20 per cent, that purchases and transactions below Ksh10,000 be exempted from the charges," read part of the submission.
Since the Finance Bill was proposed, Kenyans and other stakeholders have opposed the increased taxes and submitted feedback. KICTANET was opposing the taxes and amendments made to laws governing the ICT sector.
Conclusively, the network added that in as much the bill is aimed at increasing tax revenue, the proposal poses significant risks to privacy, economic growth, and digital inclusion.
KICTANET asked the government to engage all stakeholders to ensure a healthy balance between revenue generation and privacy protection.
