async>
Players in Kenya’s creative industry have raised concerns over some clauses proposed in the unsavory Finance Bill 2024 which they argue will adversely cripple growth in the sector.
 

In a joint memorandum dated June 6, players in the sector say that specific proposals enshrined in the Bill pose grave ramifications in the creative industry and provide a hostile market for creatives.

Arguing that they contribute 5% to the national GDP the government is only reneging on its promise to bolster the growth of the creative industry.

The clause, they argue, will cripple the digital economy’s growth and will directly impact creative business.

“For example, all musicians on SKIZA 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 internet and data be waived as this Is not a value-added product.”

The second clause they want to be scrapped is the proposal to charge eco levy on video cameras, SD cards, CDs, microphones and other sound recording equipment included in Section 45.

“This will further increase the cost of doing business in this sector by increasing the cost of inputs,” they say.

They also want the Ksh.24,000 monthly relief from withholding tax proposal highlighted in Clause 25 (D) to be deleted, proposing to have the relief limited to be raised to Ksh.49,999.

“This will directly impact the growth of smaller and younger creators working in our sector by making it harder for them to reinvest in their craft,” they added.

Leave a Reply

Your email address will not be published. Required fields are marked *