- Whatever has been spoken is just hot air. The way this Finance Bill has been packaged, Kenyans don’t want it, Salasya said.
- He spoke ahead of the tabling of the report on the Finance Bill, 2024 by the Finance Committee of the National Assembly.
Image: PETER SALASYA/ X
Mumias East MP Peter Salasya says the government’s move to drop some contentious clauses in the Finance Bill, 2024 does not fix problems facing ordinary Kenyans.
Speaking shortly after the Kenya Kwanza government removed the proposed 16 per cent Value Added Tax on some basic commodities including bread, the MP said debate on the Finance Bill, 2024 should be dropped and pressing concerns in the Finance Act, 2023 dealt with first.
“Whatever has been spoken is just hot air. The way this Finance Bill has been packaged, Kenyans don’t want it, that’s the reality. Removing tax on bread alone is not the solution. Removing the Eco levy on specific things does not bring the solution,” the MP said.
He spoke ahead of the tabling of the report on the Finance Bill, 2024 by the Finance Committee of the National Assembly.
“What we want is that the Finance Bill 2023 (now an Act) is still burdening Kenyans. It’s just like you move up the ladder then once at the top, another ladder is added,” Salasya said.
“This thing should be suspended and be taken back to the people if the President could be honest enough with Kenyans and be able to listen to Kenyans, he should have said we remove some taxes in the Finance Act, 2023.”
The Finance Committee on Tuesday briefed the Kenya Kwanza Parliamentary Group meeting about its report and indicated that several tax proposals in the Bill had been dropped.
The committee chaired by Molo MP Kimani Kuria said the committee had listened to Kenyans and the public hearings it held were not an effort in futility.
He informed the country that the proposed 16 per cent VAT on bread, transportation of sugarcane, financial services and foreign exchange transactions, Excise duty on vegetable oil and 2.5 per cent Motor Vehicle Tax has been dropped.
He further said the Eco Levy, which had been proposed to be levied on items like diapers, had also been dropped and would only be imposed on imported finished products.
This, he explained, was to protect locally produced goods and help boost Kenya's manufacturing capacity, create jobs and save foreign exchange.
“Consequently, locally manufactured products, including sanitary towels, diapers, phones, computers, tyres and motorcycles, will not attract the Eco Levy,” Kuria said.
Debate on the Bill has been slated for Wednesday and Thursday and voting is scheduled for Tuesday, June 25.