Kenya plans to tax crypto, NFT transfers and crypto influencers.
According to the newly introduced bill in Kenya, lawmakers are considering levying a 3% tax on cryptocurrency and NFT transfers, and a 15% tax on digital assets converted into cash. The Finance Act 2023, presented to the Kenyan parliament on May 4, will enact a digital asset tax on income from the transfer or exchange of digital assets.
Crypto Investors React to Decision
The bill will be reviewed by the National Assembly and reported by the panel. If the law is passed, it will go to the president for final approval.
The bill also considers introducing a tax on monetizing digital content. In this context, it is aimed to collect 15 percent tax on transactions such as sponsorships, establishment marketing, commercial product sales and paid subscriptions.
The digital assets section of the bill has caused controversy on the internet. Some users were pleased to see crypto and NFTs officially recognized in the country. Earlier, the Central Bank of Kenya warned against the use of crypto, but did not impose any bans.
Kenyan market analyst Rufas Kamau made a sarcastic comment. Kamau said the 3 percent tax was a joke and asked if it applies to supermarket and credit card loyalty points.
Kenyan crypto advocate Cryptocurrency Kenya, on the other hand, claimed that the taxation decision was a targeted abuse. He also compared the government-proposed 3 percent tax to Binance’s 0.10 percent transaction fee, noting that the tax is higher compared to the fees charged by exchanges.
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