MPs Scrap Proposed 12pc Excise Duty On Mobile Money Transfers

MPs have voted to scrap proposed 12 per cent excise duty on mobile money transfer by banks, agencies and other financial service providers.

The increment was proposed by Treasury Cabinet Secretary Henry Rotich mid this year to 12 per cent, up from 10 per cent. He said the money that will be collected from the increment will be used to finance the Universal Health Care program.

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Mobile money services had already effected the increment for both withdrawals and money transfers.

For Safaricom, withdrawal of amount between Ksh501 and Ksh2,500 from M-Pesa Agent now costs Ksh28 up from Ksh27. Withdrawing between Ksh2,501 and Ksh3,500 which was previously Ksh49 costs Ksh50.

The increase took effect as from July 1. This also affected banks that offered mobile money withdrawals through ATMs.

ATM withdrawals of amounts between Ksh200 and Ksh2,500 and Ksh2,501 as well as Ksh5,000 increased cost by Ksh1 while those between Ksh5,001 and Ksh10,000 increased cost by Ksh2. Those between Ksh10,001 and Ksh20,000 increased cost to Ksh197 up from Ksh193.

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