Finance committee takes stand on proposed housing levy

By Peter Ochieng

Members of the finance committee in National Assembly have seemingly taken a stand on the proposed housing levy.

The levy capped at 3 per cent is contained in the Finance Bill, 2023, which is expected to be tabled in Parliament this week.

The finance committee, chaired by Molo MP Francis Kimani Kuria is recommending the slashing of the housing levy, from 3 to 1.5 per cent.

Additionally, the committee wants the implementation of the levy to be deffered to January, 2024 so that relevant pieces of legislation can be put in place to governor the fund.

The Kimani Kuria led committee also wants only employees to contribute to the fund, as opposed to the current recommendation that employers match up their employees' 3 percent remittances.

“For an amendment that has a huge financial implication, you must find a way of recouping that implication. Otherwise, we are going to get a crisis where we have approved and we have not provided the resources to do so,” Kuria said.

The commitee however wants VAT on petroleum increased from the current 8 per cent to 16 per cent, as proposed in the bill.

Members of the committee in their recommendations also want online content creator to pay 5 per cent tax, an not the 15 per cent contained in the bill.

The bill is expected to be debated in the National Assembly his week, before the Treasury presents the 2023/2024 budget on 15th June, 2023.