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Why Kenyans Are Opposing the Finance Bill 2024: A Comprehensive Analysis

The Finance Bill 2024 in Kenya has sparked widespread protests and opposition from various quarters. The bill, which aims to raise revenue for the government, has been criticized for its punitive tax measures and potential negative impact on the economy.

Finance Bill 2024
Why Kenyans Are Opposing the Finance Bill 2024

In this blog post, we will delve into the main reasons behind the opposition to the Finance Bill 2024 and explore the implications of these protests on the country's economic landscape.

Increased Tax Burden on Citizens

One of the primary concerns is the increased tax burden on citizens. The bill proposes a range of taxes, including a 16% value-added tax (VAT) on bread, a tax on diapers, sanitary towels, and insurance, which are seen as essential items that should not be taxed.

Finance Bill 2024
Why Kenyans Are Opposing the Finance Bill 2024

This has led to widespread discontent among Kenyans, who feel that the government is placing too much of a burden on them.

Regressive Taxation

Another major issue is the regressive nature of the tax proposals. The bill disproportionately affects low-income earners and small businesses, which are already struggling to make ends meet. This has led to accusations that the government is targeting the most vulnerable segments of society.

Economic Burden on SMEs and Consumers

The bill's tax measures are also seen as a significant burden on small and medium-sized enterprises (SMEs) and consumers. Higher compliance costs and tax rates will negatively impact these businesses, hindering economic growth and development.

Lack of Transparency and Consultation

Critics argue that the government did not engage in adequate consultation with stakeholders before introducing the bill. This lack of transparency has led to widespread mistrust and opposition to the bill.

Prioritizing Taxation Over Industrialization

Some experts argue that the government should prioritize industrialization over taxation to expand the tax base and promote sustainable economic growth. The current approach, they say, is short-sighted and will only lead to further economic stagnation.

Finance Bill 2024
Why Kenyans Are Opposing the Finance Bill 2024

Potential Negative Impact on Economic Growth

The bill's tax measures are also seen as a potential threat to economic growth. Higher taxes can lead to reduced consumer spending and investment, which can hurt the economy.

The opposition to the Finance Bill 2024 in Kenya is rooted in concerns about the increased tax burden on citizens, regressive taxation, the economic burden on SMEs and consumers, a lack of transparency and consultation, prioritizing taxation over industrialization, and the potential negative impact on economic growth.

These concerns have led to widespread protests and opposition from various quarters, highlighting the need for the government to revisit its approach to taxation and economic policy.

Randy Osei Akoto

A content creator, writer, blogger and digital marketer currently the Editor and writer at 2Rvisionnews.com. Believes in hard work and keeps up with latest trending stories making rounds across the globe in all aspects, from politics, sports, entertainment, health, business etc.

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