Lobby says Finance Act 2021 is a big burden to Kenyans that needs amendments

Suba Development Forum Coordinator Bernard Arap Okebe Speaking in Gwasi South Ward in Suba South Constituency.He says there is need to amend the Finance Act 2021 which is a big burden to Kenya after imposing a hefty 20 percent excise duty effective July 1 this year-Photo Courtesy
 

By Dickson Odhiambo

 

July 10, 2021

 

Lobby says Finance Act 2021 is a big burden to Kenyans that needs amendments

 

The newly enacted Finance Act 2021 is greatly going to impact negatively on Kenyans if left to be implemented as it is hence Parliament needs to amend it, a lobby group has said.

 

Suba Development Forum says the Act will give more burden to Kenyans who have already been overburden by a very high cost of living.

 

Suba Development Forum Coordinator Bernard Arap Okebe notes that the Act is punitive to the low and average Kenyans who bear the most burden of paying taxes in all commodities and services in the country.

 

Speaking in Ligongo of Gwassi south ward in Suba South constituency, Okebe said the Act which came effective of July 1, 2021 is very heavy as it loads a hefty 20% excise duty on Kenyans.

 

Okebe urges the National Treasury and Parliament to relook on the issue and make amendments to the Act which, he adds, is going to heighten the cost of living on the already burden Kenyans.

 

“Kenyans have already been burdened by the high cost of living and putting a hefty 20 percent excise duty is like adding concentrated salt to a wound. This Act needs to be relooked into by both Parliament and the National Treasury,” Okebe says.

 

He says people from Arid and Semi-arid areas like Gwasi south and entire Suba region in Homa Bay County need to be cushioned from the difficulties they face through emergency assistance to the residents.

 

Okebe had earlier made similar remarks in Magunga and Pundo of Gwassi adding that even Banks loans are from July 1, have been subjected to the 20% excise duty which in essence is going to negatively impact on the ordinary Kenyans through goods they buy in various retail shops.

 

Already, a number of Banks across the country have begun sending SMS to their customers informing them that all loan related fees and commissions will be subjected to 20 percent excise duty effective July 1 this year.

 

“Dear member, following the enactment of the Finance Act 2021 all Loan related fees and Commissions will be subjected to 20 percent excise duty effective July 1, 2021,” read part of sms from a bank operating in the country.

 

Another message from another Bank reads as follows: “Dear Customer, following the enactment of the Finance Act 2021 by the Government of Kenya, we wish to inform you that effective 1/7/2021, all loan related fees and commissions will be subject to 20 percent excise duty.”