Kenya Proposes New Bill to Impose Tax on NFT Transactions
Kenya is one of the most widely populated African nations that are rapidly developing. Recently the government of Kenya has decided to consider a new taxation measure on its cryptocurrency sector.
The country, on this account, has introduced a new crypto bill that will directly impact various aspects of cryptocurrency firms, such as online marketing and NFT transactions.
Local media outlets have reported that the government of Kenya may be working on generating new methods of income generation. With the help of the tax collected from the region, the government will be able to enhance its financial budget and undertake some new projects for national improvement. These new projects will be supported by the tax collection revenue from the crypto sector.
Kenya also Imposed Tax on Digital Asset Dealings
There are many parts of the world where the financial regulators have already imposed and collected taxes from the cryptocurrency investors under their jurisdiction under the capital gains head.
However, it seems that the Kenyan government has only recently decided to think about introducing capital gains taxation from the crypto industry. To this end, the government has levied a 3% taxation on digital asset dealings. It is another step towards adding the cryptocurrency sector to the regulatory framework.
It entails that the cryptocurrency sector might be able to become a source of national income and a major tax contributor. Furthermore, it will be able to enhance the taxation revenue of the nation, which can lead to improving its financial prospects.
In addition to cryptocurrencies, the Kenyan government has also thought about imposing taxes on NFT transactions. Government officials have maintained that the taxation on NFTs is going to be the same as crypto, i.e. 3%.
The legislators in the African nation have imposed around 15% taxes on online influencers. These influencers have amassed a considerable following on social media platforms, and they have strong advertisement acumen.
Therefore, the government has decided to impose these new taxation laws on the influencers that have managed to generate several income streams using social media platforms.
Thus far, the government has not passed the bill in question, and it is set on a course to get a reading by the National Assembly. Once it gets a green light from the National Assembly members, it will be forwarded to the president for final assessment and consideration.
Rufas Kamau is an analyst who claims that imposing a 3% tax on the crypto industry is satire. He maintained that imposing a tax exclusively on crypto is not fair, and the state must impose the tax on every other digital entity.
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