§ Mr. J. Johnsonasked the Secretary of State for the Colonies the new rates of tax in Kenya for Europeans, Asians and Africans, respectively; and what the respective estimated yields will be therefrom.
§ Mr. LytteltonOnly changes in direct taxation will affect the various communities differently; the increases in indirect taxation will, of course, affect all residents alike.
The proposed changes now before the Kenya Legislative Council are as follow:
DIRECT TAXATION
(a) Applying to all communities:
Income Tax and Surtax
A surcharge will be introduced of 75 cents on each £1 of chargeable income exceeding £800 but will be limited to the amount due on an income of £9,000 less any allowances. This which will affect mainly non-Africans should bring in a further £250,000; it will apply to incomes earned in, and after, 1953.
(b) Applying to non-Africans:
Personal tax
The existing rates will be doubled and a new rate introduced for total incomes exceeding £200. This new rate will be as follows:
Sh. per year Where total income does not exceed £60 40 Where total income exceeds £60 but not £120 80 Where total income exceeds £120 but not £200 120 Where total income exceeds £200 200 In addition women, other than married women living with their husbands, will no longer be exempted from this tax. These changes will take effect from the 1st January, 1955, and are expected to increase revenue by £300,000
(c) Applying to Africans:
African poll tax
The present basic rate is Sh. 17. This will be raised by Sh. 2 and corresponding changes will be made where the rates differ from the basic rate.
Special tax
This is levied on members of the Kikuyu, Meru and Embu tribes at the rate of Sh. 20 per year, with remission and exemptions for loyalists. This rate will be raised by Sh. 2.
Both these measures will take effect from the 1st January, 1955, and are expected to raise a further £120,000.
4WINDIRECT TAXATION
A new tax of 12½ per cent. of the export value will be levied on all coffee exported from Kenya. This should bring in £750,000.
Taxes on sugar will be raised from 3 cents to 6 cents per pound. This is expected to raise an additional £192,000.
The duty on matches will be raised as follows:
— Present rates Proposed rates Boxes of up to 100 matches, per gross. Sh. 3/30 Sh. 8/25 Boxes containing between 100 and 200 matches, per gross. Sh. 6/60 Sh. 16/50 For every additional 100 matches or part of 100, per gross of boxes. Sh. 3/30 Sh. 8/25 Tear-off matches, in strips, discs or booklets, per 1,000 matches. 27½ cents 69 cents These alterations should bring in £65,000
The duty on wines and spirits will be raised as follows:
— Present rates Proposed rates per imperial gallons per imperial gallons Liqueurs, cordials, mixed potable spirits, exceeding 3 per cent. proof. Sh. 66 Sh. 84 Other potable spirits exceeding 3 per cent. proof. Sh. 105 Sh. 125 Ale, perry, cider, beer, stout, exceeding 3 per cent. proof. Sh. 7/50 Sh. 9 Wines and vermouth Sh. 9/90 Sh. 12 Other still wines imported in bottles. 55 per cent. ad valorem or* Sh. 9/90 66⅔ per cent. ad valorem or* Sh. 12 Other still wines imported in casks or other containers of five gallons or over. 55 per cent. ad valorem or* Sh. 6/60 66⅔ per cent. ad valorem or* Sh. 8 Sparkling wines—Champagne. 55 per cent. ad valorem or* Sh. 27/50 66⅔ per cent. ad valorem or* Sh. 33/30 Sparkling wines—other. 55 per cent. ad valorem or* Sh. 19/25 66⅔ per cent. ad valorem or* Sh. 23/40 These changes should produce additional revenue of £181,000.
*Whichever is the greater.