Telecommunications service provider Safaricom has adjusted prices for its services following the lifting of the suspension of the Finance Act 2023.
Through a notice, the company indicated that the new adjustment would reflect the increase in excise duty on mobile money transfer services from 12 to 15%, with mobile money transfer charges to go up by 3% as the charges on SMS, data, home fibre and calls to reduce by 5%.
“Following the enactment into law of the Finance Act 2023 and the Court of Appeal ruling on 28th July 2023, effective 29th July 2023, we will be reviewing our call, SMS, data, fibre, M-Pesa pricing to reflect the increase in excise duty rate on fees charged on mobile money transfer services from 12% to 15% and the decrease in excise duty rate in telecommunication services (call, SMS, data and fibre) from 20% to 15%,” the statement reads in parts.
More details of the adjustment are available on the telco’s official website, app and USSD codes *100#, *200#, and *544#.
Busia Senator Okiya Omtatah filed a petition seeking to have the act thrown out on grounds that some of its provisions were unconstitutional, leading to the temporary suspension of its implementation.
However, the ruling delivered by Justices Mohamed Warsame, Kathurima M’Inoti and Hello Omondi will see some taxes being introduced immediately while others periodically.
“The application by (the state) has merit and the same is allowed as prayed with the effect that the order made on July 10, 2023, suspending the Finance Act 2023, and the order prohibiting the implementation of the Finance Act 2023, be and is hereby lifted pending the hearing and determination of the appeal,” the court ruled.
The ruling a big boost to the National Treasury’s plan to raise more taxes to implement the Sh3.6 trillion budget.
