CBK survey shows CEOs jittery over impact of Finance Bill 2023
The Finance Bill 2023, which proposes higher taxes, has sent shockwaves in the business community amid concerns on the impact of the changes on businesses, a central bank survey shows.
Industry players now fear that increased taxation will squeeze their profit margins and hinder further investment.
“Respondents were concerned about the proposed increase in taxation, rise in electricity and fuel prices and the weakening of the shilling,” the central bank said in its latest market survey.
Talk to government
The proposed tax hikes have prompted industry associations and business leaders to engage in dialogue with the government, advocating for a more balanced approach that supports growth and economic recovery.
Simultaneously, the current high prices of electricity and fuel are putting a strain on businesses across sectors. With electricity costs surging, companies are grappling with mounting operational expenses, which could impact their competitiveness in the global market.
Rising fuel prices are also affecting transportation costs, further exacerbating the financial burden for industries reliant on logistics and distribution.
Additionally, the weakening of the shilling has become a cause for concern among industry players engaged in international trade. A weaker currency means increased costs for imported raw materials, equipment, and goods, which could significantly impact profit margins. Companies heavily reliant on imports are facing increased pressure to manage foreign exchange risks effectively.