In proposed changes in the Finance Bill 2020, Mr Yatani is seeking the green light from Parliament to compel firms which have not been taxed elsewhere to pay one percent of gross sales to the Kenya Revenue Authority (KRA).

The Bill contains new measures which will help generate new revenue to partly fund the Sh3.2 trillion budget.

The proposed levy to be known as minimum tax will take effect January 2021 and is largely targeted at companies which do not pay corporate income tax, which is based on profit.

Under the draft 2020 Value Added Tax (Digital Market Supply) Regulation, downloadable digital contents, subscription based media, software programmes, electronic data management and supply of music, film and games will be taxed.

Others include search engines and automated help desk services, online tickets, e-learning platforms, audio, vision or digital media, transport hailing platforms, among others.

"A person supplying taxable services through a digital marketplace shall be required to register for VAT in Kenya," the regulation says.