Sharp Daily
No Result
View All Result
Saturday, June 28, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

The World Bank Warns Against Tax Increases

Duncan Muema by Duncan Muema
June 8, 2023
in News
Reading Time: 2 mins read
World Bank on glass building. Mirrored sky and city modern facade. Global capital, business, finance, economy, banking and money concept 3D rendering animation.

World Bank on glass building. Mirrored sky and city modern facade. Global capital, business, finance, economy, banking and money concept 3D rendering animation.

The World Bank has raised concerns over the potential consequences of proposed tax increases on the country’s economy. This comes against the backdrop of the proposed Finance Bill 2023, which introduces a number of taxes, including the 3% housing levy, an increased VAT on petroleum products to 16%, an excise duty of 15% on mobile money transfers and advertising of alcoholic beverages, and a 3% excise duty on cosmetic products, among others.

Critics argue that the tax hikes, coupled with the rising cost of goods, could hinder economic growth in Kenya. Increased taxes would burden businesses, reducing their profitability and limiting their capacity for investment and expansion. This could result in reduced job creation and overall economic output. The World Bank stresses the need for a business-friendly environment that fosters private sector growth and attracts domestic and foreign investments.

Read more: Kenya’s Resilient Economy Shows Growth Amidst Challenges, World Bank reports

Higher taxes could impose significant challenges on businesses across various sectors. The increased tax burden could strain the financial resources of small and medium-sized enterprises (SMEs), potentially leading to business closures and job losses. Moreover, the competitiveness of Kenyan businesses could be compromised in the global market as higher taxes may discourage foreign investors and hamper export-oriented industries.

RELATEDPOSTS

Parliament slashes tax on digital asset trades: What this means for investors

June 23, 2025

Opinion: Austerity wrong medicine for Kenya’s economy.

June 16, 2025

The World Bank emphasizes the importance of nurturing investment and innovation for economic development. Tax hikes could dampen investor confidence and discourage entrepreneurial initiatives. Higher taxes may divert resources away from research and development, stifling innovation and hindering the country’s progress in technological advancement and industrial growth.

Read more: The Impact of Taxation in An Economy

While the Kenyan government aims to boost revenue through tax increases, it is essential to balance revenue generation and the potential negative economic impact. Alternative strategies put forth include improving tax collection efficiency, addressing corruption, and reducing public expenditure to alleviate the need for significant tax hikes.

It is crucial for policymakers to carefully evaluate the potential consequences of tax increases on businesses, investment, and innovation. Exploring alternative strategies to enhance revenue collection and streamline expenditure could offer a more sustainable approach to economic development in Kenya, ensuring a conducive environment for thriving businesses and promoting long-term growth.

Email your news TIPS to editor@thesharpdaily.com

Previous Post

How the KRA’s Enhanced Budget Is Planned to Benefit The Nation

Next Post

World Bank Recommends Replacing Diesel Trains on The SGR With Electrified Trains

Duncan Muema

Duncan Muema

Related Posts

News

Private vs Public Pension Funds in Kenya

June 27, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025
News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025
Agriculture And Economy
News

Lets get Kenya out of FATF list

May 9, 2025

LATEST STORIES

Private vs Public Pension Funds in Kenya

June 27, 2025

The mechanics of currency manipulation

June 27, 2025

Understanding how to access your pension savings in Kenya.

June 27, 2025

What happened to president Ruto’s economic dream?

June 27, 2025

Opinion: Populism feeds votes, not growth

June 27, 2025

Competitive advantages of small businesses

June 26, 2025

Opinion: Invest in sports for national prosperity

June 26, 2025

Ethiopia’s access to Eritrean ports is a game-changer for trade

June 26, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024