Finance Bill 2024: Multinationals, including Coca-Cola, Challenge Eco Levy
Multinationals, including Coca-Cola, have expressed strong opposition to the Finance Bill 2024, specifically the eco levy and the 10% Excise Duty on both locally manufactured and imported plastics. The senior managers of Coca-Cola appeared before the National Assembly Finance and Planning Committee, warning that the new tax would create a volatile business climate, erode investor trust, and hinder strategic planning.
Coca-Cola Communications and Sustainability Director John Mwendwa stated that the eco levy would be a double charge on essential industry players, making products unaffordable. He emphasized that there is already a mechanism that works, and the eco levy would be an additional burden.
The telecommunication and internet service providers, led by Safaricom and Airtel under TESPOK, also expressed concerns about the proposed increase in digital taxation. They warned of a looming internet distribution paralysis due to expensive operational costs. TESPOK CEO Fiona Asonga highlighted that the uncertainty in the tax regime would lead to individuals carrying cash instead of using digital payment methods, which is not safe.
The Packaging Producer Responsibility Organization also opposed the eco levy, citing that it would lead to increased operational costs that would be passed on to the primary consumer. The organization’s Chair, Kimani Rugendo, emphasized that this would be double taxation and could lead to companies moving to other countries.
The Infotrak poll shows that 83% of Kenyans oppose the Finance Bill 2024 proposals. The poll highlights several key issues that have contributed to the widespread opposition. The introduction of a 16% Value-Added Tax (VAT) on bread, VAT on financial transactions, and the motor vehicle tax are among the most contentious proposals.
The poll also revealed that Kenyans are strongly opposed to the proposal to exempt the disclosure of personal data by data controllers to the taxman. An impressive 83% of respondents are against this measure, with many expressing concerns about the potential impact on their privacy and data security.
The Finance Bill 2024 aims to increase revenue collection and align tax policy objectives with other government objectives. However, the opposition from multinationals and various stakeholders highlights the need for the government to reconsider these measures and engage more effectively with the public to address their concerns about the economy and the proposed taxes.
