Ruto Suggests More Reductions To Digital Tax Hrs After Meeting YouTubers
This, he noted, was to allow digital content creators to grow their platforms.
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The National Assembly Committee on Finance and Planning on Wednesday, June 14 proposed that President William Ruto's government grant a reduced figure from the 15 per cent digital tax that was imposed on content creators in the proposed Finance Bill 2023.
National Assembly Finance and Planning Committee Chairperson Kuria Kimani revealed in the National Assembly morning session that the lawmakers proposed to reduce the digital tax from 15 per cent to 3 per cent.
This, he noted, was to allow digital content creators to grow their platforms.
National Assembly Finance and Planning Committee Chairperson Kuria Kimani addressing during an engagement with stakeholders on the proposed Finance Bill 2023 on May 27, 2023. /FACEBOOK.KURIA KIMANI
"We are asking digital content creators to pay a 3% withholding tax in order to generate revenue to connect other people to the national grid of electricity so that they can also participate in the sector they (digital creators) are in," he said.
Kuria was presenting a report to the floor of the house after listening to the opinions of Kenyans regarding the Finance Bill and also proposed deductions on the contentious Housing Levy.
"We propose a reduction in the housing fund contribution from 3% to 1.5% to avoid discrimination against those who are earning less," he added.
The National Assembly’s Finance Committee previously cited the 15 per cent digital tax for content creators among seven contentious issues in the Finance Bill that it considered as most contested during its eight days of public participation hearing.
Many celebrities and digital content creators, including digital media practitioners such as Viral Tea's Marvin Chege, had urged the government to reduce the proposed 15 per cent figure warning that the current 15 per cent was endangering the potential of up-and-coming content creators to grow.
"This feels more of a big win for content creators than it is a personal win. I'm glad our voices as digital content creators and submissions were considered and it paid off," Chege spoke after the review was proposed.
The proposal came hours after President William Ruto, during the closing ceremony of YouTube Black Voices at the State House, Nairobi, announced plans to have the digital content tax of 15 per cent reduced owing to persistent calls for the government to go slow on taxing content creators in the proposed Finance Bill 2023.
"I know many people have made a case that we should go slow on the taxation around this area and I don't disagree, but you guys are making money. But anyway we will talk.
"I have told the committee in Parliament to have a chat with you and I'm happy that you guys said you are happy to have a chat. We are willing to relax some of the issues but you know we are making huge investments in this space and if this is the future of work, it is the future of where we are also going to get revenues to run the government," he told the content creators.
On Friday, June 2, President Ruto had relaxed his hardline stance on content creators in Kenya by promising to review the 15 per cent tax, expressing his desire to turn around the content creation atmosphere in the country by making it into a space where content creators can earn a living from their craft.
