UDA reveals plan to lower the cost of living through finance bill 2023.
The Ruto- led party, UDA reveals plan to lower the cost of living through finance bill 2023. This comes after uproar from the opposition about the finance bill being worse than the country already is.
In a communique, The United democratic Alliance, gave a number of reasons why the finance bill 2023, is what the Kenyans really need.
The Finance Bill, 2023 has several specific proposals which seeks to lower the cost of living for all Kenyans, part of which are as follows:
This Fund and shall be used to provide affordable houses for the many non-housed Kenyans.
The Bill provides that an employer shall pay to the National Housing Development Fund established under section 7 of the Housing Act, in respect of each employee the employer’s contribution at three (3%) per centum of the employee’s monthly basic salary; and the employee’s contribution at three (3%) per centum of the employee’s monthly basic salary.
There is a proviso that the sum of the employer and employee contributions shall not exceed five thousand shillings a month.
Is the Affordable Housing levy a Tax?
There has been misconception that affordable housing levy is a tax yet it is not. The levy is a savings plan deduction with benefits accruing to the employee. It will also enhance the national saving plan.
What benefits will therefore be accruing to an employee?
According to the Bill, some of the benefits of the affordable housing plan as per the Bill are –
Home ownership: for employees who qualify for affordable housing the contributions by the employee shall be used to finance the purchase of a home under the affordable housing scheme.
For employees who are not eligible for affordable housing, upon the expiry of seven years from the date of the start of making the contributions, or after the attainment of retirement age, whichever is earlier the employee may opt to:
Transfer contributions to a retirement scheme or convert to pension;
~Transfer contributions/benefits to another registered person of their choice;
~Transfer contributions/benefits to a spouse or dependent children; or
~Receive back all the contributions made in cash hence a savings plan.
IN ADDITION all contributions made by employees into the Fund shall also get returns based on the return on the Fund.