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What are the controversial parts of the appropriation bill Kenya 2024?

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The Finance Bill 2024 has been a subject of much controversy in Kenya, with several provisions sparking protests and debate. Here are some of the most contentious aspects of the bill:

Proposed Tax Increases
Impact on the Cost of Living
Concerns About Transparency and Accountability
Opposition to the Bill
The Government's Stance
Conclusion

1. Proposed Tax Increases

The Finance Bill 2024 proposes a number of tax increases, including:

Value Added Tax (VAT): The bill proposes to increase the VAT rate from 16% to 17.5%. This would affect the prices of a wide range of goods and services, including food, fuel, and healthcare. (Source: KPMG East Africa ↗)
Excise Duty: The bill proposes to increase excise duty on a number of goods, including alcoholic beverages, tobacco products, and sugary drinks. (Source: KPMG East Africa ↗)
Income Tax: The bill proposes to increase income tax rates for high-income earners. (Source: KPMG East Africa ↗)
Digital Service Tax: The bill proposes to introduce a new digital service tax on online platforms such as Google, Facebook, and Amazon. (Source: KPMG East Africa ↗)

These proposed tax increases have been met with strong opposition from businesses and consumers, who argue that they will lead to higher prices and a decline in economic activity.

2. Impact on the Cost of Living

The proposed tax increases are expected to have a significant impact on the cost of living in Kenya. The increase in VAT, in particular, is likely to lead to higher prices for essential goods and services, making it more difficult for people to make ends meet. (Source: Business Daily Africa ↗)

3. Concerns About Transparency and Accountability

There are also concerns about the transparency and accountability of the government's spending plans. Critics argue that the government has not provided sufficient justification for the proposed tax increases, and that the money raised may not be used effectively. (Source: The East African ↗)

4. Opposition to the Bill

The Finance Bill 2024 has faced strong opposition from a variety of groups, including:

Civil Society Organizations: Civil society organizations have argued that the bill is unfair and will disproportionately impact the poor and vulnerable. (Source: The East African ↗)
Businesses: Businesses have expressed concerns that the tax increases will stifle economic growth and make it more difficult for them to compete. (Source: Business Daily Africa ↗)
Opposition Political Parties: Opposition political parties have called for the bill to be withdrawn, arguing that it is a burden on the people. (Source: The East African ↗)

5. The Government's Stance

The government has defended the Finance Bill 2024, arguing that it is necessary to raise revenue to fund essential services such as healthcare, education, and infrastructure. (Source: The East African ↗)

6. Conclusion

The Finance Bill 2024 is a controversial piece of legislation that has sparked widespread debate in Kenya. The proposed tax increases have been met with strong opposition from businesses, consumers, and civil society organizations, who argue that they will lead to higher prices, a decline in economic activity, and a burden on the people. The government has defended the bill, arguing that it is necessary to raise revenue to fund essential services. The outcome of the debate remains to be seen, but it is clear that the Finance Bill 2024 is a significant issue for Kenya.