Safaricom PLC has made an official announcement regarding the revision of charges for call, SMS, data, fiber, and M-Pesa services, in response to the enactment of the Finance Act 2023.
Starting 29 July, 2023 the telecommunications company will be implementing changes in the excise duty rates.
The excise duty rate on mobile money transfer services will increase from 12% to 15%. However, there will be a decrease in excise duty for calls, SMS, data, and fiber, from 20% to 15%.
On July 28, the Court of Appeal granted the lifting of an order that had previously suspended the Finance Act 2023.
The decision came after an application made by Treasury CS Prof Njuguna Ndung’u.
A three-judge bench, comprising of Justices Mohammed Warsame and Kathurima M’Inoti, ruled in favor of lifting the suspension placed on June 30, which was pending the determination of an appeal filed by Prof Ndung’u.
The judges emphasized that the Finance Act has a duration of 90 days, during which the subsequent budgetary cycle is initiated.
“We have no doubt in our mind that the Finance Act and the Appropriation Act are interdependent. While the former provides for generation of the funds, the latter provides for the expenditure. There can be no expenditure where the mode of generation of the funds has not been provided for,” the judges said.
From the Finance act, the controversial Housing levy, originally suggested to be set at 3 per cent, was approved, albeit with an amendment to 1.5 per cent of gross pay.
The levy has been converted to a tax ,Initially it was intended to function as a savings plan that Kenyans could access after a period of seven years.
Digital creators will now be subjected to a 5 per cent tax, a notable reduction from the initial proposal of 15 per cent.
Besides, Betting and Insurance withholding tax rates also underwent amendments , with Betting tax being charged at 12.5 per cent, and Insurance withholding tax at 16 per cent.