Finance Bill tax increase irks TB warriors
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Sixty five-year old Emily Mutua,a TB survivor requires two adult diapers daily to manage an incontinence condition, where she is not able to hold urine.
One piece of adult diaper costs between Sh1, 000 to Sh1, 100. This means that Emily needs more than Sh2, 000 daily to manage her hygiene, and by larger extent, human dignity.
And now with the proposed increase in excise duty on diapers, Emily is a worried woman that the move is going to impact heavily on her economic status, which is already battered. She earns a meagre income out of goodwill from her volunteering expedition in a health facility in Kajiado County, where she counsels TB patients.
“I am urging Parliament not to pass the retrogressive Finance Bill that doesn’t care about poor people living with disability.
“Remember I have to take a lot of water to help my remaining kidney, so I have to pass more urine, and this means that I will need more diapers,” she told this publication as more persons with disability appealed to Parliament not to approve the Finance Bill 2024.
The Bill tabled at the National Assembly on May 13 for the first reading by Molo Member of Parliament (MP), Francis Kimani Kuria, has attracted widespread condemnation.
Karen Muriuki, an autism champion from the Differently Talented Society of Kenya (DTSK) was one of the Persons With Disability (PWDs) who congregated at a Nairobi hotel last week to analyse proposals in the Finance Bill 2024 that are likely to affect this community.
Access to diapers
She said that it’s regrettable that besides children with disabilities having no access to diapers, the proposed levy hikes on the commodities further exposes this group of minors to more misery.
“So we are calling to ensure that this bill is not approved as it is. We have received calls from many of the caregivers for children with autism; those with neuron-diverse challenges, asking where they can access the diapers.
“We are therefore asking for zero rating of those diapers,” Muriuki said during a National Tax Payers (NTA) hosted meeting.
She pointed out that after analysing the Financial Bill, 2024, PWDs were raising concerns over the financial burden that’s expected if Parliament approves it.
“Higher prices for adult diapers can place a considerable financial burden on individuals and families who need them regularly, particularly those with limited incomes, including the elderly under palliative care and individuals with disabilities,” she said.
The health consequences involved in the proposed bill, Muriuki said, will be significant.
“Limited access to adult diapers can lead to health issues such as skin infections, urinary tract infections, and other complications associated with poor hygiene,” she said, noting that this can further impact the well-being and quality of life for those who rely on these essential products.
Dignity and Stigma were other issues also identified as other negative impacts expected to affect PWDs.
Benson Isaboke, the Director, Sight of Relief Organisation weighed in on the issue, noting that the unaffordability of adult diapers can cause psychological stress and loss of dignity for those who need them, potentially increasing the stigma associated with incontinence.
“The proposed eco-levy on diapers will significantly impact the cost of raising children,” he said.
Costly buys
Newborns can require up to 12 diaper changes per day, with each disposable piece costing Sh26.10 ($0.20) to Sh39.15 ($0.30). This translates to daily diaper costs of Sh261 ($2) to Sh391.50 ($3), which will increase further due to the new tax.
“Mothers, as the primary caregivers, will bear the brunt of these increased expenses, adding to their financial and emotional challenges,” he said, highlighting that this could force families to make difficult choices, potentially compromising on essential needs like healthy foods for their babies.
The higher costs of disposable diapers, Isaboke observed, may push more mothers to consider cloth diapers, which require more time and effort to clean and maintain.
“This could impact the convenience and comfort of childcare, as disposable diapers are often recommended for their ease of use and ability to provide undisturbed sleep for infants,” he said.
Denis Ngure from Kikuyu District Disability Network (KDDN), an affiliate of United Disabled Persons of Kenya (UDPK), called on the zero-rating of excise duty on mobile money transfer.
He asserted that increase of excise duty on money transfer will affect PWDs because they receive the monies through Mpesa. The Ministry of Labour transitioned the social protection cash disbursements through mobile money transfer from the traditional bank wire in February this year.
This followed a Presidential Directive to facilitate stipend disbursements through MPesa.
“However, this means that the increase is a burden on their side because the Sh2, 000 given to them is reduced,” noted Ngure, who also raised concern over the proposed increase in excise duty on batteries.
He pointed out this will affect most of the PWDs especially those who operate using motorised wheelchairs, which they need as part of their mobility. “So once we increase excise duty on batteries it means that it’s going to be difficult for PWDs to move from point A to B,” he said.
The Finance Bill 2024 proposes introducing a 16 percent value-added tax on bank transactions and increasing the excise duty on fees charged for money transfers through telcos and banks from 15 percent to 20 percent. This, Ngure noted, will have a direct impact on Social Protection.
“The net income from cash transfers for the elderly and PWDs, will potentially affect their access to household food security, education, healthcare, and social support,” he said.
Generally, these changes will increase the cost of essential banking services, raise the price of credit, and drive more transactions to the black market, noted Ngure, pointing out that low- and medium-income earners may prefer cash transactions to avoid these additional costs.
Caterina Wanjiku, a content creator and a member of the Short Stature Society of Kenya (SSSK) said the proposed upward tax adjustments will negatively affect talented PWDs. She is not happy about the Bill since it also proposes an income tax on digital content monetization, replacing the existing Digital Service Tax (DST) with a Significant Economic Presence Tax (SEPT) for non-resident digital service providers.