In a recent video posted on YouTube, Lang’ata MP Phelix Odiwour, popularly known as Jalang’o, expressed his criticism of content creators regarding the proposed digital tax outlined in the Finance Bill 2023.
Jalang’o pointed out that he cannot defend content creators due to their extravagant lifestyles, exemplified by individuals such as Eric Omondi, Mulamwah, Oga Obinna, Natalie Tewa, Vincent Mboya, Mungai Eve, Njugush, Abel Mutua, Nicholas Kioko, Akothee, Amber Ray, the Bahatis, and the Wa Jesus family. He emphasized that their luxurious lifestyles come at a cost.
Although acknowledging that some content creators have achieved success through their creative endeavors, Jalang’o found it difficult to justify why these individuals, who are making millions, cannot afford to pay the proposed 15 percent tax.
“This situation is something you have brought upon yourselves, and I am not deceiving you; the government will not back down. What we need to do is unite and consider how much we are willing to earn in order to pay the tax or how we can communicate that sometimes we are merely showing off,” Jalang’o asserted.
As a content creator himself, Jalang’o expressed the challenges he faces when addressing the issue to the authorities, emphasizing the need for content creators to propose a counteroffer of what they can reasonably pay. He stated that the government will persist until content creators fulfill their tax obligations.
This debate arose shortly after President William Ruto praised content creators Timothy Kimani, known as Njugush, and Edwin Butita during a National Drama Festival concert at State House Nairobi. President Ruto acknowledged their ability to generate substantial income through YouTube, dispelling the notion that their T-shirt-clad appearances indicate a lack of financial means.
President Ruto directed the Finance and ICT Committee in Parliament to reconsider the clause regarding the taxation of digital content creators in the Finance Bill 2023, with the aim of providing more leniency to allow young people to earn a decent living through their creative work.
“I am aware of the proposal in this year’s budget concerning digital content and creators… I have instructed the ICT and Finance committee to work on it. Let them create more leeway for these individuals so that they can organize themselves, and later on, we can all pay taxes,” President Ruto emphasized.
The Finance Bill 2023, which has faced significant criticism from the Opposition and the general public, suggests implementing a 15 percent withholding tax on income generated from digital content.
According to the proposed Bill, “Any person required to deduct the digital asset tax must remit the deducted amount to the Commissioner, along with a payment report containing the deducted tax amount and any other information requested by the Commissioner, within 24 hours of making the deduction.”
