- This is how the country wants to fill its budget
- The initiative has drawn condemnation and outrage from the local crypto lobby
- Not only traders, but also promoters of cryptocurrency services and products will suffer
- They will have to pay up to 15% of income from affiliate programs and subscriptions
The Kenyan government submitted its draft state budget for next year yesterday, May 4. Among other things, there is a 3% tax on income from cryptocurrency transfers and NFTs, as well as a 15% levy on monetized online content.
Before the draft is passed, it will undergo five rounds of readings. But it’s already clear that Kenya plans to fill the budget by taking control of financial flows in cryptocurrency.
The obligation to charge fees will fall on service providers. In this regard, those exchanges that operate in the country without registration will have to obtain a license.
As for the second tax, it will fall on Influencers and bloggers. They will be charged up to 15% of income from monetizing online content.
These are services to promote products and services, including sponsorships and paid subscriptions.
We note that the reaction of the local crypto lobby to the bill was rather negative. Stretching 3% on each crypto transaction is like “taxing loyalty program points,” said Rufus Kamau.
He ridiculed the government initiative, noting that it would only scare away service providers.
Rights group Cryptocurrency Kenya said taxing cryptocurrency exclusively is a “targeted persecution” of the industry.
President William Ruto intends to increase state fees to $36.7 billion in the next five years. The new taxes will affect not only the Web3 sector, but also other income.
In particular, the rate on the maximum wage will jump by 5%. Earlier we reported that Nigeria has adopted the doctrine of the transition to blockchain.
In doing so, the country actually forcibly imposes CBDC by restricting the circulation of fiat.The country is in fact forcibly imposing CBDC by restricting the circulation of fiat.