The Blockchain Association of Kenya is blocking the new Digital Asset Tax. The new tax took effect on September 1, but the case will be mentioned in court on September 28.
The Kenyan government introduced several new taxes in the Finance Act 2023, aiming to generate extra income of up to $2 billion for the country.
Since July 1, the Finance Act 2023 has been imposing a 1.5% tax on the earnings of online content creators. As for crypto, the new law mandates owners of crypto exchanges to deduct 3% of the asset’s value as DAT.
BAK believes the tax is unfair because it’s categorized as income tax, yet it’s imposed on the gross value of the asset rather than on gains and profits.