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Kenyans in the North East show more support for 2.5% motor vehicle tax, Infotrak Research

  • An Infotrak poll showed that 83% of respondents are against the proposed Finance Bill 2024, especially the new taxes on environmentally unfriendly products
  • Awareness of the Finance Bill varied by region, with the central region showing the highest awareness at 62% and the eastern region the lowest at 41%.
  • The proposed 2.5% motor vehicle tax has the greatest support in the Northeast region (14%), while other regions have much less support

Elijah Ntongai, a journalist at TUKO.co.ke, has over three years of financial, business and technology research expertise, offering insights into Kenyan and global trends.

Nairobi – A recent poll conducted by Infotrak Research & Consulting shows significant public disapproval of the proposed Finance Bill 2024.

Infotrak survey on the Finance Act 2024.
Image of a black man driving a car and a trader holding Kenyan banknotes, for illustration. The Finance Bill has proposed various taxes applicable to car owners and traders. Photo: Getty Images.
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The survey, which covered different regions and demographic groups, points to a vocal rejection of new tax measures, especially those targeting everyday goods and services.

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The financing law is encountering national opposition. According to the Infotrak survey, a significant 83% of respondents have opposed additional duties on environmentally unfriendly products such as batteries, tires, telephones and ICT equipment.

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This sentiment is echoed in several regions: only 6% are in favor and 11% are not yet convinced.

Regional support for proposed taxes

Regional analyzes showed varying levels of support for different tax proposals.

For example, the introduction of a motor vehicle tax had the greatest support in the North East (14%) and East (12%), while the coastal and central regions each showed 7% support.

“The Northeast region had a high percentage of respondents who supported the bill to introduce a 2.5% tax on motor vehicles, based on their value, which would go to insurance,” Infortrak reported.

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Additional duties on environmentally unfriendly products received uniform support at around 7%, with the lowest in Rift Valley (4%).

Support for the exemption from disclosure of personal data by data controllers for tax purposes was also low, with only 5% supporting the proposal nationally.

Similarly, support for the 16% VAT on financial services such as Mpesa transactions remained low across all regions, averaging around 4%.

Regarding the perceived impact of the Finance Bill on the Kenyan economy, a significant 85% of participants from the North East expressed the belief that it will have no discernible impact.

Sentiment was uniform among adults in the 36-45 (80%) and 45-55 (81%) age groups.

Awareness of the Finance Act 2024

The survey also shows that there are varying degrees of understanding of the Finance Bill 2024. Overall, 54% of participants were familiar with the Bill.

The central region showed the highest level of knowledge, with 62% of respondents familiar with it, while the eastern region had the lowest level of knowledge, with only 41% of respondents familiar with it.

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The proportion of male respondents (59%) who were aware of the bill was higher than that of their female counterparts (41%).

The demographic group with the most knowledge about the bill consisted of people in the age range of 46 to 55 years, with an awareness level of 60%.

Source: TUKO.co.ke