NAIROBI, May 8 (Xinhua) — The Kenyan government’s new tax proposals that seek to boost revenue collection and cut public borrowing have drawn mixed reactions, attracting as much opposition as praise.

The Opposition coalition — Azimio la Umoja-One Kenya Coalition — and workers’ unions are among those opposing the measures while lawmakers allied to the ruling Kenya Kwanza Alliance are defending them.

On Monday, Azimio leader Raila Odinga termed the proposals a piece of punishment to Kenyans at a time when millions are grappling with increased unemployment and high cost of living.

“The tsunami of taxes in that bill will bury everyone, especially the jobless youth and the poor struggling down at the bottom,” Odinga told a news conference in Nairobi, the capital of Kenya.

The key changes contained in the proposed law dubbed Finance Bill 2023 include raising the income tax rate to 35 percent for those earning 500,000 shillings (about 3,663 U.S. dollars) a month, the introduction of a 3 percent tax on digital assets like crypto and token codes, and imposition of a 15 percent levy on the monetization of digital content.

Further, the bill proposes to bring into the tax bracket smaller businesses making at least 3,660 dollars in annual turnover, with the gross sales subject to a 3 percent tax whether the seller makes a profit or not.

The government also proposes to increase tax on fuel products to 16 percent, up from 8 percent, and deduct 3 percent of the basic salaries of workers to finance affordable housing schemes as well as to impose a tax on beauty products such as wigs, false beards, eyelashes, human hair and artificial nails.

On the positive side, the bill proposes to delete the 8 percent value-added tax applicable to liquefied petroleum gas and exempt exported services from taxation.

“After being attacked through turnover tax, the youth who have tried to find themselves jobs by using their creative talents in the digital space are being targeted through digital content monetization. From paying zero tax currently, a creative youth who creates a digital platform or content will now be required to pay 15 percent tax. As a country, we will be killing innovation and leaving our youth with too few options, if any,” Odinga said. “We will not support this proposal.”

He said proposals to remove pharmaceutical and agricultural pest products and even fertilizers from zero-rated items will hurt citizens more.

Kenya University Staff Union secretary-general Charles Mukhwana said Sunday that “the high cost of living is making workers slaves who cannot afford a decent life. We are gravely concerned that we, the workers’ representatives, have not been consulted on any of these levies.”

David Ochieng, a lawmaker allied with the government, lauded the taxation measures, saying that those who earn well must be willing to support those who don’t. “Kenyans should be ready to fund the construction and growth of affordable housing for those who can’t pay for it,” he added.

David Ndii, the chairman of President William Ruto’s Economic Council, said the tax proposals will cushion the country from external shocks without relying on the International Monetary Fund.

The Bloggers Association of Kenya noted that while content creators are currently paying a 5 percent withholding tax, the proposed 15 percent withholding tax would destroy the nascent sector.

“The government should nurture content creation before it starts taxing the youth trying to eke a living from it. Content creators invest in cameras, artists and other digital equipment which they pay taxes on. Taxing them further would kill their careers at a time unemployment is soaring and people are trying to look for alternative income sources,” said Bruce Oketch, a digital content creator.

Many Kenyans fear that life may become too unbearable for the common people if the government raises taxes on fuel and squeezes workers’ income further.

“I earn 110 dollars. I don’t expect the government to take any more money from my pay for housing levy for instance. What would I use on my children now that I am barely surviving?” asked Alice Musau, an office messenger.