Kenyans, including in public service, have strongly opposed the government’s new tax proposals that seek to boost revenue collection and cut public borrowing.
Kenyans submitting their views on the disputed Finance Revenue Bill, 2023, have been challenged to provide alternative revenue sources for the government to help deal with the revenue shortfalls in the country.
The National Assembly’s Committee on Finance and National Planning asked those appearing before the Committee to present their grievances over proposals in the Bill to also give alternatives to the country’s financial constraints.
Kenyans and other stakeholders from various sectors in the country have been making submissions to the Committee in a week-long public hearing on the Finance Bill.
The Finance Committee chairperson Kimani Kuria, while receiving submissions from the Kenya Association of Manufacturers (KAM) on the proposed law, argued that finding alternatives for the government was the only way of saving Kenyans from over-taxation.
Mr Kuria said that the only way out of the deficit gap in the country was to grow revenues that would help fund the government programs and meet other government obligations.
“We all live in this country and are aware of the dire economic situation the country is in. I reckon that some of the provisions contained in the Bill for instance the export levy was meant to promote local manufacturing,” the Molo MP said.
“We are surprised that you are opposed to it. We have also noticed that you have different recommendations on certain provisions. If you really want to grow local manufacturing, you must speak with one voice,” he added.
The committee further argued that the ripple effect of some of the proposals in the Bill, including the proposed National Housing Development Fund would create jobs for people.
Other members of the committee led by Kitui Rural MP David Mboni, his Turkana South counterpart John Ariko and Paul Biego of Chesumei asked those opposed to the Bill to be more realistic.
“This Committee has a tough assignment before it. Everyone who has come here is telling us, delete this clause, delete that one. However, we also need alternative ideas. If you’re opposed to this proposal, give an alternative that will help us raise revenues,” the MPs said.
KAM had in their submissions asked the Committee to safeguard the interests of the manufacturing sector while enhancing the competitiveness of Kenyan businesses.
They also criticized the unpredictability of the tax regime discouraging foreign direct investments in the country.
Meanwhile, lawyer Miguna Miguna has advised President William Ruto to withdraw the Finance Bill, 2023 and give a listening ear to the plight of Kenyans.
Writing on his Twitter handle, Miguna said that Ruto should address more pertinent issues like the high cost of living and corruption first before proposing new taxations.
“Pull back. And listen to Kenyans. Withdraw the Finance Bill, 2023, postpone the implementation of the housing levy and return to the drawing board,” Miguna said.
The lawyer, now a Kenya Kwanza administration advocate said it was time that the president hires independent and truthful advisors who will hold him accountable.
“Raila is gaining popularity because many of the senior government officials you have appointed are failing to engage Kenyans in a transparent, respectful and accountable manner. Do not be defensive and do not argue with the people,” he tweeted.
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