A number of ideas in Kenya’s 2023 finance bill aim to raise the country’s tax rates.
One of the contentious ideas would impose a 15% withholding tax on money made from the monetization of digital content. Renowned comedian Eric Omondi is leading content producers in their opposition to the proposition.
“Do not attempt, do not think, do not try to tax youth and especially online media. Do not tax content creators because you did not create them, you did not support them. You don’t know who they are, you don’t know their struggles, you have never talked to them. You’ve never called them, you’ve never supported them. You want to tax them, that is theft. You can not take money that does not belong to you”, said comedian Eric Omondi.
Given that they receive little government support for their work in creating material, the content creators complain that the proposed levy is too expensive for a developing digital economy.
Ramdee Production host, Ramsey Kigwa, added:
“What we earn on YouTube or other social media platforms can not cater for our needs. So when the government comes in and insist that they want to tax 15% from it, it means that they are leaving us on the negative side”, he said.
According to economists, if adopted, the idea will have a significant impact on both the development of the entire digital economy as well as the earnings of individual content producers.
“One of the irony in this digital service tax is holding of 15% on it and remember this is just a withholding tax. Withholding tax is not final so again the digital content creators will be expected to do their books at the end of the year to show how much they earned. In other words after you have paid 15% , you will still be expected to pay what we call a final tax”, explained economist Eric Odera.
