The Kenyan government has introduced a new proposal in the Finance Bill 2024 that would require individuals aged 25 and older, who are still living with their parents, to pay a monthly tax.
This plan aims to increase government revenue by targeting a segment of the population that traditionally might not contribute to taxes. This new tax, amounting to KSh 300 per month, will apply even to those who are unemployed.
According to the Finance Bill, young adults over 25 living with their families will be classified as separate households from their parents. This means they will be considered financially independent for tax purposes, even if they do not have their own income.
The idea is to extend the tax net to include more citizens and increase revenue, especially from those who might not currently contribute directly.
This proposal is part of a broader set of measures the government is exploring to enhance its revenue collection efforts.
The Finance Bill also highlights that those who do not have any income will still be obligated to pay this tax if they fall within the age group and live with their parents.
The government sees this as a way to ensure that all adults contribute to the national budget, regardless of their employment status.
The Finance Bill's rationale for this move is to address the financial dependency of young adults on their families and encourage them to become more financially responsible.
By classifying them as separate households, the government hopes to promote independence among young adults, pushing them to seek employment or alternative income sources.
This proposal has sparked a range of reactions among Kenyans. Some see it as a practical measure to encourage young adults to be financially independent and contribute to the economy.
Others, however, criticize it as unfair, particularly for those who are unemployed or facing financial difficulties. Critics argue that imposing a tax on unemployed individuals could add to their financial burdens and potentially increase social inequality.
In a related development, the government has also proposed that prisoners in correctional facilities start paying taxes. The plan involves prisoners engaging in work and income-generating activities while serving their sentences.
The aim is to help them gain skills and experience, making it easier for them to reintegrate into society upon release. Activities such as establishing bakeries and improving workshops in prisons are part of this initiative.
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