The Ministry of Lands, Public Works, Housing and Urban Development has appointed the Kenya Revenue Authority as a collection agent of affordable housing levy.
The ministry on Thursday notified members of the public that the levy is now in effect from 1st July, following lifting of temporary orders barring the implementation of Finance Act 2023.
The levy is payable by the employee and employer at a rate of one point five per cent of the employee’s gross monthly salary by the employee, and one point five centum of the employee’s gross salary by the employer.
The money shall be remitted by the employer not later than nine working days after the end of the month in which the payments are due.
Court of Appeal last week lifted the order barring implementation of the Finance Act 2023 after 9 petitioners moved to court to block the law. Since the lifting, some companies have adjusted prices of various services to accommodate new tax measures geared to help the government meet its financial obligations in the 2023/4 Budget.
Safaricom already has announced a review of sms, calls, and data prices to align with the provisions of the new law. “We will be reviewing our call, sms, data, fibre and M-pesa pricing to reflect the increase in excise duty rates on fees charged on mobile money transfers services from 12 per cent to 15 per cent,” the telecommunications firm said.
Additionally, the firm said they will also consider the decrease in the excise duty rate on Telecommunication services from 20 per cent to 15 per cent.
Safaricom said the details on pricing on each of their products can be found available at each of their different touch points such as the Safaricom app, by dialing *100#, *544# or visiting M-pesa agents who are spread across the country.
Even as organisations align themselves to the new law, opposers of the law have moved to the supreme court to challenge the decision by the three judges of court of appeal.
In a notice of appeal filed by Busia Senator Okiya Omtatah and six other petitioners, they want the apex court to quash the decision by a three-judge bench of the appellate court that allowed the National Treasury’s plan to raise more taxes to implement the Ksh3.6 trillion budget.
Judges Lift Order Suspending Kenya’s Finance Act 2023 – Kenyan Wallstreet
