Take pay cuts don’t tax Kenyans, bar owners tell MPs
Bar and restaurant owners in Murang’a county have asked MPs to cut down on their allowances rather than hike taxes.
The entrepreneurs expressed their fear on proposed increase of excise duty on alcoholic drinks siting job loses.
Led by their chairman Simon Njoroge, the business people complained that the move by Kenya Revenue Authority (KRA) to increase excise duty on alcoholic products by 6.3 percent will force some of investments to close down establishments.
The traders who are allied to Bar, Hotels and Liquor Traders Association(BAHLITA) during a press briefing on Tuesday in a Murang’a hotel said the timing for the new taxation rate comes when those who are in the liquor industry are trying to recover from the effects of Covid-19.
Data from BAHLITA shows at least 20,000 establishments, including bars, night clubs and hotels, closed indefinitely since the pandemic hit the country in March 2020.
Social distancing cut operating capacity by almost 50 percent according to industry players.
They have asked the government to spare job losses and explore other ways to raise revenue, observing that neighbouring countries have not added tax on alcoholic drinks.
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