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Kenya considers tax rises amid high inflation

The parliament in Kenya is being asked to consider new taxes amid a cost of living crisis.

As members of the National Assembly return to work in Kenya, nationwide protests have been planned over a government plan for new tax which would see significant price rises for everyday Kenyans.

Among the proposals in the 2023 Finance Bill are the doubling of VAT on petroleum products, a lowering of the threshold for small businesses to pay higher rates, and a string of measures targeting rapidly developing revenue streams such as digital content creation and cryptocurrencies.

MPs are returning to the National Assembly after a month-long recess to consider the divisive legislation.

Nairobi County Senator Edwin Sifuna, who is Secretary General of the opposition Orange Democratic Movement, told Newsday Kenyans just can't afford further increases to their food shopping.

"Many incomes in Kenya have shrunk due to inflation. Our proposal to the government is to shelve the proposals for now until the economy improves. There is always an alternative... cut expenditure. There is a lot of unnecessary wastage and expenditure in the government," he says.

(Image: Protests over cost of living in Mathare settlement of Nairobi, Kenya May 2, 2023. Credit: Reuters)

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