![Gabon GA](https://www.musicinafrica.net/sites/all/modules/contrib/countryicons_gosquared/flat-large/ga.png)
Kenyan creatives propose amendments to Finance Bill
A group of organisations representing the Kenyan creative sector has added its views to an ongoing debate about the Finance Bill of 2024.
- Kenya’s Parliament is in the process of approving a bill that the creative sector says could hamper progress.
Through a joint memorandum delivered to Parliament on 6 June, the group said it had collated the comments of more than 8 000 professionals working in industries such film, the performing arts, content creation, music, visual art, literature and sports.
The organisations are the Creative Society of Kenya, Music Associations Alliance of Kenya, Intellectual Property Association of Kenya, Photographers Association of Kenya, Kenya Musicians and Performers Association, Partners Against Piracy, Kenya Film and Television Professional Association and Producers Guild of Kenya.
On 13 May, Kenya’s Parliament published the Finance Bill 2024, which proposes a number of far-reaching tax and administrative policies. The proposals are open for public participation before the bill is signed into law before 1 July.
In the memorandum, the organisations have highlighted specific proposals that they believe will have a negative impact on the growth of the cultural and creative industries (CCIs).
“Kenya’s creative sector contributes 5% to the national GDP, creates jobs and is a contributor to a happier and healthier lifestyle,” a statement says. “Further, it is clear that the government has a vested interest in seeing Kenya’s creative sector prosper.”
The organisations are asking Parliament to reject the bill, which will lead to an increase in excise duty on airtime and internet data. “[T]his will erase the growth of the digital economy and will directly impact creative business,” they said.
“For example, all musicians on the Skiza ringback tone service will now receive less revenue because Skiza is traded in airtime and the payments are made net of applicable taxes. We recommend that VAT and excise on airtime and internet data be waived as this is not a value-added product.”
Secondly, it has called for the removal of a proposal to charge an eco levy on video cameras, SD cards, CDs as well as TV, radio broadcasting and sound recording equipment.
The third submission calls for the removal of a proposed Ksh24 000 ($190) monthly relief from withholding tax based on the minimum wage. It contends that this will directly impact the growth of young creators. The group instead proposes that the relief limit be raised to Ksh49 999.
It also wants the replacement of the 1.5% Digital Service Tax with the 20% Significant Economic Presence for gross turnover to be removed. This proposal, the group argued, would affect the CCIs and brand Kenya as a hostile market for global investors. “[W]e anticipate that global platforms working in Kenya will now reduce their investment in Kenyan-made content and this will cause job losses. We recommend that there be a flat tax rate of 6% charged on profits and that the VAT currently charged on payments to these platforms be removed.”
The group is also lobbying against a proposal that removes tax exemptions for amateur sports organisations, saying that they represent more than 90% of all sports organisations in Kenya and provide the foundations for the creation and development of a sports-based economy. “The existing exemptions should be expanded in line with the goals of the Talanta Hela Initiative by the Ministry of Sports,” it said.
Further, it has recommended that the digital marketplace be declared a special economic zone to spur public investment and growth on a global scale.
Articles populaires
Sur le même sujet
![Gabon GA](https://www.musicinafrica.net/sites/all/modules/contrib/countryicons_gosquared/flat-large/ga.png)
![Namibia NA](https://www.musicinafrica.net/sites/all/modules/contrib/countryicons_gosquared/flat-large/na.png)
![Zimbabwe ZW](https://www.musicinafrica.net/sites/all/modules/contrib/countryicons_gosquared/flat-large/zw.png)
Commentaires
s'identifier or register to post comments