“Oppose New Taxes”, Raila tells Mps
“Oppose New Taxes”, Raila tells Mps. leader Raila Odinga urged opposition MPs to oppose the Finance Bill 2023 because of the additional tax measures, which he called illogical. For instance, the former prime minister questioned why not everyone was eligible to purchase a home under the program even though the Kenya Kwanza administration wants everyone to contribute to affordable housing.
“Unilaterally, Kenya Kwanza wants to deduct 3% of basic salaries to finance the affordable housing scheme. In an economy where employees are already faced with reduced income due to the high cost of goods, we find the introduction of this new tax irrational. We found it curious that while not everyone qualifies for the proposed affordable housing regime, everyone is expected to pay. This is illegal borrowing ,” said Raila.
“Oppose New Taxes”, Raila tells Mps
The leader of the opposition also criticized the government’s proposal to impose a 15% tax on the income of companies that produce digital material. “A creative young person who develops a digital platform or content will now have to pay 15% tax, up from not having to pay any. We will be strangling creativity as a nation and giving our children too few, if any, options. This initiative won’t have our backing, he declared.
In its analysis of the Bill, the auditing company KPMG issues a warning that the proposal “is likely to have an impact on the prices of transportation and the production of goods, increasing the inflationary pressure on the economy.”
On Sunday, May 7, matatu owners issued a warning to commuters that fee increases would be unavoidable if increased gasoline taxes were enforced.
“We know very well that products must be transported to consumers, so every product’s price will increase,” said Simon Kimutai, chairman of the Matatu Owners Association.
President William Ruto’s effort to bring back an unpopular fuel tax that his predecessor was forced to drop reveals leaders’ double-talk on a topic of great public concern and rekindles the politics that surround petroleum pricing.
