National Treasury Cabinet Secretary, Henry Rotich, has rolled out new taxation measures as the country seeks to bail itself out of the financial crisis being experienced.
According to Rotich, the country is set to further increase taxes on basic commodities in a bid to raise an estimated Sh64 Billion, that is set to go a long way in improving the current financial situation.
This is in accordance with the Excise Duty Bill 2015, which was passed by Parliament last week. The Bill, however, caused an uproar in the Assembly with Opposition Chief Whip Jakoyo Midiwo leading a walk out in protest of the Bill.
Treasury is said to have identified specific sectors from which it would levy more taxes on the already overburdened citizens.
In a brief sent to International Monetary Fund (IMF), Rotich said that the country is set to increase taxes on cigarettes and beer, whose levy is set to increase with as much as Sh100 per litre.
With Rotich being warned against more taxation on consumer goods, it has emerged that prices of fruit juices, bottled water and sodas would also increase with as much as Sh10 per litre.
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Public transport sector will also be affected as the prices of second hand cars and motor-cycles are set to significantly increase.
"We have taken concrete steps to collect additional revenue through a wide range of revenue yielding corrective measures... that would yield about Sh63.64 Billion or one per cent of the GDP," read the brief according to Standard.
The country is said to be facing a cash crisis as allegations of excessive borrowing and overspending continues to hit the government. The government has also been faced with challenges in revenue collection despite Kenyans being termed as some of the most highly taxed citizens in the world.
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