- The finance bill aroused many wounds in many Kenyans, leading to protests in the capital city, Nairobi, over the burden of proposed taxes in the finance bill 2024
- Azimio insists that the tax measures will substantially impact both individuals and businesses in the country.
- The National Assembly Committee on Finance, chaired by Molo Mp Kimani Kuria, is expected to table a report on the Bill after carrying out a public participation exercise.
The protests over the Finance Bill
The finance bill aroused many wounds in many Kenyans, leading to protests in the capital city, Nairobi, over the burden of proposed taxes in the finance bill 2024. The protest, dubbed ” Occupy Parliament” demonstrations, aimed to pressure the lawmakers not to pass the bill.
The Finance Bill 2024 has been opposed over some contentious proposals, including a 16 per cent VAT tax on bread, a 2.5 per cent motor vehicle circulation tax and others that could increase the cost of mobile money transfer, airtime and internet data bundles.
Similarly, Kenyans have raised concerns over the eco-levy environmental tax, which they say will increase prices for all plastic packaging materials, batteries, and hygiene products.
The National Assembly Committee on Finance, chaired by Molo Mp Kimani Kuria, is expected to table a report on the Bill after carrying out a public participation exercise, even as he assured that they will consider submissions given.
He said the committee will go through clauses presented by Kenyans and compare them with what is being proposed in the Finance Bill and ensure the report is ready by 18th June 2024.
“We want to assure Kenyans that this was not an exercise in futility. We want you to hold us to account on the views where the bill is and where the committee report is going to be. We will make sure we accommodate as much as possible, views of Kenyans even as we try to balance generating revenue to fund the budget estimates of Financial Year 2024/25,” said Kimani.
Read Also: The Finance Bill 2024: Implications for Kenya’s Housing Sector
The Azimio Coalition’s leaders views on the finance bill
While Kenya Kwanza says that the bill will help raise revenue for the good of the country, Azimio insists that the tax measures will have a substantial impact on both individuals and businesses in the country.
Head of Public Service, Felix Koskei, has assured that all revenue collected once the bill is passed will be safeguarded and used prudently.
“We have agreed and given direction, and even the President has directed, we are not going to tolerate corruption in this country,” said Koskei, who spoke from Nandi on 16th June 2024.
Azimio Coalition, led by Wiper Leader Kalonzo Musyoka, have affirmed that the country can only thrive if the economy is stimulated, not by arbitrarily and consistently raising the tax burden.
“Kenyans must be prepared to give up their belts or what remains of them in the second wave of Kenya Kwanza taxes. The majority of tax measures in the 2024 Finance Bill are punitive in nature, with substantial consequences on Kenyans,” Kalonzo said.
Narc-Kenya Leader Martha Karua also stated that there is no justification for additional punitive taxes on the already overburdened and neglected populace and that Kenyans should not relent in fighting for the country’s survival.
“The reality of the Finance Bill 2024 represents a bouquet of new pains for Kenyans and our question is, will the brutal regime and Parliament listen to the cries of the people with regard to this Bill?” Karua posed
“The administration needs to cut non-priority spending and we are giving examples of travel budget and planned spending through roadside declarations. They need to trim the hospitality budget and abolish offices of advisors at all levels,” she added.
On his part, Kakamega Senator Boni Khalwale said he is confident that the National Assembly will unlock issues surrounding the Finance Bill.
“The responsibility to pass or amend the Finance Bill is not in the hands of the Senate; it is in the hands of the National Assembly. On the proposals being made for amending the Finance Bill, the Members of National Assembly must listen,” Khalwale said on his X, formerly Twitter.
He added: “This country is not going away, if you wanted to build a project in a period of, say, three years and it is forcing you to tax Mwananchi, there is nothing wrong with you spreading it out so that you can tax Mwananchi less.”
At the same time, Archbishop Anthony Muheria of Nyeri Archdiocese urged the MPs only to allow their conscience to guide them while debating and voting for the bill.
He said it is wrong not only to disdain and disregard Kenyans’ opinions but also to bulldose their ideas.
“Listen to the people and forget about political divisions and pressures. This is not about political persuasion you have, it is about the good of the welfare of Kenyans so let us vote and legislate for what at least serves more than 80 per cent of this country,” said Muheria.
During the public participation exercise, the private sector also gave its input, warning of dire consequences and negative economic disruptions should some tax measures be implemented.
The sustained pressure from Kenyans may have yielded fruit after the National Assembly’s Finance Committee on the 17th of June evening agreed to drop some of the punitive taxes proposed in the Finance Bill 2024.
The committee is expected to table its report, with recommendations, in the House.
Kenya Kwanza and Azimio MPs have been called to meetings by their respective leaderships to solidify their stances on the Bill as the political landscape shifts.
Kenya Kwanza’s PG, chaired by President William Ruto, comes as his emboldened deputy, Rigathi Gachagua, accused of inciting MPs associated with him to shoot down the Bill over its punitive proposals.
Azimio has also urged its members to oppose it, but with the committee recommending the deletion of the punitive taxes, it remains to be seen how the MPs will approach debate on the Bill.
Proposed changes
Addressing the nation, Kimani Kuria’s led committee announced that the proposed changes were driven by inflationary pressure in many parts of the country.
The 20 per cent excise duty proposed by the treasury on mobile money will be retained at 15. Additionally, the 16 per cent value-added tax (VAT) on financial services must be scrapped.
The eco levy will only be subject to imported finished products. Products manufactured locally, such as mobile phones, sanitary towels, diapers, motorcycles, and wheelchair tyres, will not be subjected to Eco levy. This move will help safeguard manufacturers and protect local jobs.
The proposed 16 per cent value-added tax (VAT) on bread will be scrapped. It needs to be clarified whether it is under a zero-rated schedule or removed from the exempt schedule. However, moving it to the exempt schedule means that the manufacturers can claim input tax, thus moving it to the consumers.
The committee has scrapped the 2.5 per cent tax on morto vehicles in the sense that it will cripple the insurance sector. The committee also noted that the tax should be applied under the income tax.
Farmers with a turnover of less than 1 million shillings should be exempted from generating tax invoices through the E-Tims electronic ta invoice management systems.
The committee has dropped the proposal to amend data protection law to exempt the process of data relating to the assessment, enforcement and collection of tax/duty.
