Timothy Kimani alias Njugush has reacted to the Second Reading of the Finance Bill conducted in parliament on Wednesday, July 14, 2023, days after he protested that the Bill was unjust.
In a statement via his Twitter, the comedian was elated to announce to his fellow content creators that the withholding tax for creatives was reduced from 15 to 3 per cent after his outcry.
"Imepita.I hope your MP represented your concerns. But always let your voice be heard. All the content creators where you at? WithHoldingTax was proposed to be brought down to 3%," Njugush stated.
#FinanceBill2023 imepita🥲🥲.I hope your MP represented your concerns. But always let your voice be heard .
All the Content creators where you at? WithHoldingTax was proposed to be brought down to 3% 👏👏👏👏👏👏👏👏👏👏👏👏👏👏!!!!!!! pic.twitter.com/eWPoLhLLtn— Njugush (@BlessedNjugush) June 14, 2023
While the content creator was building castles in the air after their win, one of his tweeps replied to his post with a video of the chairman of the Parliamentary Finance Committee, Molo MP Kuria Kimani explaining the changes that were made to the proposed tax for content creators.
Withholding tax on digital content creators taken down from 15.0% to 5.0%. While the headline rate may suggest a 'win', the catch is this is not a final tax & content creators will still be required to remit 30.0% total tax net of expenses. Content creators, be advised! pic.twitter.com/DDTXhTY8NL
— Julians Amboko (@AmbokoJH) June 13, 2023
Kuria Kimani explained that the withholding tax for content creators was slashed after concerns from members of the public.
Kuria, who moved the bill defended the proposed content creator's withholding tax, saying even other employees such as nurses and teachers pay taxes.
“Clause 24 introduced Digital Content Monetization at a withholding tax of 15 per cent. If you compare it with other professions that legal, and accounting fees…all these particular fees are at 3 per cent, that’s why we found that charging digital content creators at 500 percent more was unfair and punitive to this growing sector. We propose that this fax be reduced to 3 per cent,” he said.
Njugush complains about 15% tax
Speaking during an interview, the comedian decried that the proposed plan was unjust to the content creators.
He said that the same content creators were even receiving help from the public.
"When the President said that me and Butita earn more than him I knew that there was a problem. I knew there was a narrative that was being sold that content creators make so much money. However, for me I feel that is unfair because the same content creators…I saw Jalang'o saying that some of us are showing cars but at the same time he didn't mention that a lot of us are posting pay bills for maisha inawaendea mrama," he stated.
He also stated that the government was overlooking the returns from content creation in order to milk as much as they can from digital creators. He also complained that the amount proposed was more than what professionals were taxed.
"Point is it's true that there is money but it's not in that magnitude. We have pastors going in chase cars but we never look at that but look at content creators and how to milk money from them," he stated.
"15 per cent is too much, other professions are paying 5 per cent kwani sisi tunatoa pesa wapi content creators. I feel its going to be very unfair for us because those people who are apparently showing wealth and are well-off have ways of paying taxes. You can not be all that and KRA hawajakutafta," he added.
