Nairobi — PricewaterhouseCoopers (PwC) now says that the proposed Finance Bill 2023 will lead to a higher cost of living, coming at a time when the economy is recovering slowly from the impact of Covid-19 pandemic.

William Ruto's government has tabled a bill before the National Assembly that seeks to raise taxes as the administration targets to raise Sh3.6 trillion for the financial year 2023-24.

PwC Associate Director Edna Gitachu says that the government is targeting critical services such as M-Pesa charges and telephony service, which will go up from 12 percent to 15 percent.

"This is not the first time that we are seeing this proposal. A number of proposals have been rejected in the past but they have found themselves in this new bill," "said Miss Gitachu, adding that the proposed bill is a one-sided proposal and is very cumbersome to taxpayers.

PwC also observed that the bill goes against the Kenya Kwanza's promise of cushioning those in the lower cadre of the economy.

The multinational added that the passing of the law could make Kenya less attractive as a business hub.

The bill also proposes a raft of taxes that will have a major impact on Kenya's digital content creators and owners of platforms that facilitate the trading of digital assets.

The proposal includes a 15 percent withholding tax on payments related to the monetization of digital content, which will significantly impact the thousands of young people who make their living in the digital space.

Also, any person who receives rental income on behalf of the owner of the premises shall deduct tax and, within 24 hours, remit the amount to the taxman.

Public sector trade unions have already threatened to call for industrial action should the proposed taxation in the Finance Bill be enacted into law.