Dive into Africa Crypto Week in Review, discover revolutionary implications of Kenya Tax riots, and the latest moves by South Africa SARS and Nigeria SEC.
Despite a tumultuous week in Kenya, there have been steps in the right direction regarding regulation, especially in South Africa and Nigeria.
The tax crisis in Kenya shows that some challenges and opportunities can be exploited for the country’s betterment.
Crypto Snapshot: The Tax Crisis In Kenya
Protests over the unpopular finance bill in Kenya have seen hundreds of people shot dead by police. In a bloody day that will never be forgotten by the streets of Nairobi, over 20 people were killed on Tuesday when protestors stormed the parliament building.
The most disturbing photo from Kenya 🇰🇪, Retweet widely for the World tu see 👀 pic.twitter.com/5RZnltLB8p
— Zoom Afrika (@zoomafrika1) June 27, 2024
Protestors argue that the bill would lead to unaffordable tax rises on businesses and ordinary citizens, pushing the cost of living even higher.
The original bill proposed several controversial taxes, including a 16% sales tax on bread and a 25% duty on cooking oil.
Moreover, it sought to increase fees on financial transactions and impose a new 2.5% tax on the value of vehicles, charged annually.
Another contested tax was the eco levy, which the government said would prevent illegal dumping of goods in the country. However, protestors argue that the level would substantially increase the cost of essential items like batteries and sanitary towels.
Beyond taxes, the bill empowered the Kenya Revenue Authority (KRA) to have unfettered access to personal data without consent, violating people’s rights to privacy.
Despite President Ruto initially dropping some of the contentious proposals, including taxes on bread, cooking oil, and sanitary towels, protestors demanded the entire bill be scrapped.
President Ruto didn’t ascent the bill into law on Wednesday after members of parliament hurriedly made amends in the second meeting on Tuesday.
The finance bill will, therefore, be drafted afresh with input from the public.
It should be noted that crypto transactions in the country are subject to taxes. Under the 2023 Finance Bill, for every crypto transaction, the government charges a 3% tax.
In the Headlines: Crypto Regulatory Progress In South Africa And Nigeria
The following crypto news also made headlines in Africa:
- The South African Revenue Service (SARS) wants to enhance its information-sharing process with various countries and banks, precisely targeting crypto exchanges. The goal is to improve transparency and compliance, especially in crypto activities, while increasing revenue. In South Africa, cryptocurrencies are considered financial instruments, and profits from capital gains are therefore subject to taxes. All crypto transactions must also be declared for tax purposes.
- In Nigeria, the Security and Exchange Commission (SEC), the country’s main regulator, is accelerating the registration of crypto businesses, including exchanges. This move is part of its Accelerated Regulatory Incubation Program (ARIP). The decision is to approve crypto businesses as rules that align with current realities are finalized. As a result, crypto businesses wishing to operate in Nigeria have a month to register. Notably, the country’s decision to restrict crypto activity has been criticized. Binance is banned from operating while top exchanges, including KuCoin, have been forced to delist the Naira. Nigeria has a thriving crypto market and is among the highest adopters in the world. Users see USDT and BTC as a shield against a rapidly devaluing Naira.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
