Home East Africa Proposed new taxes to escalate the cost of living in Nairobi

Proposed new taxes to escalate the cost of living in Nairobi

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  • Through the Nairobi City County Finance Bill 2020, Nairobi County is exploring the possibility of levying new taxes from its residents.
  • Once adopted, the taxes will lead to a higher cost of living in Nairobi.

 Through the Nairobi City-County Finance Bill 2020, Nairobi County is exploring the possibility of levying new taxes from its residents. Once adopted, the taxes will lead to a higher cost of living in Nairobi. The Bill proposes to levy several new taxes to meet its Sh15.5 billion revenue target for the financial year ending June 30, 2021.

 Among the new proposals are levying on offloading of different produces in Nairobi for the first time. Traders will be charged Sh50 per small bag, Sh100 per medium bag, Sh500 per Probox and Sh1,000 per pickup while an offloading fee of Sh30 per box of every imported fish. Tomatoes will attract Sh1,500 per Probox. Tomatoes from Tanzania will be levied less, between Sh50 and Sh250 per box, depending on their size. Flowers per lorry will be charged an offloading fee of Sh3,000, a Probox of avocado Sh800 while a pick-up of the same produce Sh1,500. Sh100 per bag will be charged for groundnuts while thorn melons will attract Sh50 per box. Macadamia and French beans per tonne will attract at Sh1,000 each. All other products will be charged between Sh100 and Sh500 per pickup and lorry respectively.

The Real estate industry will suffer a big blow with new charges for transporting building materials. Between Sh48,000 and Sh144,000 will be levied on transporting building stones depending on the tonnage with the option to pay per trip. For the first time, transfer of properties, under the tenant purchase scheme, will  be charged Sh10,000 per transfer.

Educational institutions will be levied for the first time for disposal of solid waste with daycare and nurseries charged between Sh3,000 and Sh20,000 based on the number of students and ownership whether they are private or public. Secondary day schools will have to pay between Sh2,500 and Sh10,000, boarding secondary schools between Sh3,000 and Sh20,000 while universities and colleges will pay between Sh20,000 and Sh200,000 a month.

The residential houses will have to pay Sh300 and Sh600 per household every month.  For community-based organisations (CBO) solid waste collection and transportation will attract a charge of Sh3,000 for trucks between one and seven tonnes and Sh6,000 for those above seven tonnes.

Storing inflammable materials will be charged Sh6,000 per annum. Cafes, bars and shops, will also pay Sh6,000 per annum. For chemists, the charges will be between Sh6,500 and Sh12,000, depending on their size. Non-toxic and non-hazardous industrial waste disposal of will attract a levy of Sh1,000 per tonne.

Robert Mbatia, Budget and Appropriations Committee the chairperson said that these are currently proposals that might be revised after getting views from the public as well as justification from the City Hall.

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