Kenya: State proposes 5% tax increase on false beards, eyebrows and wigs


The Kenya Kwanza government in its quest to raise more revenue has proposed a five per cent tax on wigs, false beards and eyebrows. 

The Bill which has been tabled in Kenya Parliament outlines the various revenue-raising measures by the government to finance the 2023/24 budget.

National Treasury Cabinet Secretary Njuguna Ndung'u also wants tax added on eyelashes, switches and other beauty products including artificial nails. 

 The CS has also proposed a  3 per cent deduction of basic salaries towards the National Housing Development Fund, adding that employers will have to match with another 3 per cent.

"Those that are not eligible for the affordable housing programme will have to accrue their savings over seven years, after which their first deductions will be given to them or upon retirement, whichever comes first," the bill stated. 

Other notable proposals include taxing employees' per diem, also known as cash allowance.

This means Ndung'u has proposed the amendment of section 5 of the Income Tax Act. 

The Treasury also proposed an amendment to the Employment Act to provide a 35 per cent income tax on all monthly salaries above Sh500,000.

The government has also proposed to slap a 10 per cent Excise Duty on fish imports which could hike prices. 

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