- Kalonzo saluted Kenyans who have used phone calls, text messages and social media initiatives to urge their MPs to vote 'No'.
- The Finance Bill, 2024, aims to expand the tax base and increase revenue collection from Kenyan citizens through a raft of new tax measures.
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Azimio la Umoja One Kenya Coalition has instructed its MPs to “lead from the front” in rejecting the Finance Bill, 2024.
Azimio principal Kalonzo Musyoka said Opposition lawmakers are expected to reject President William Ruto’s tax proposals in totality.
“We reaffirm our stand that all well-meaning Kenyans must oppose the Finance Bill, 2024, and have thus instructed all our parliamentary members to lead from the front in rejecting this punitive Bill in its totality,” he said.
Addressing a press conference on Friday, Kalonzo saluted Kenyans who have used phone calls, text messages and social media initiatives to urge their MPs to vote 'No'.
“This peaceful assertiveness and engagement will eventually become the norm especially under our leadership as the government in waiting,” he stated.
The Finance Bill, 2024, aims to expand the tax base and increase revenue collection from Kenyan citizens through a raft of new tax measures.
Kalonzo warned that the Bill, should it be put into effect, will significantly raise production costs, which will destroy the industry's ability to compete resulting in closures and job losses.
“Azimio believes that our country's focus should be on helping enterprises and the manufacturing industry to create jobs and wealth, increase productivity, cut living costs, and, finally, bring prosperity to Kenya,” Kalonzo said.
He regretted that bread and other necessities will now be subject to standard-rated VAT instead of zero-rated VAT, which will directly affect household spending and drive up the already expensive cost of living.
The Wiper party leader said the majority of the tax measures in the Finance Bill,2024, are punitive in nature with substantial consequences for Kenyans.
On June 7, the Law Society of Kenya warned that Ruto’s proposed tax measures will reverse gains made to achieve national equality.
LSK President Faith Odhiambo said introducing additional tax burdens on lower-income Kenyans, who already struggle with the high cost of living, directly impacts their means of livelihood and quality of life.
Odhiambo said the new proposals appear to reverse or diminish the various exemptions and benefits introduced by the Finance Act, 2023.
“The Bill proposes to increase the excise duty rates applicable to telephone and internet data services, as well as money transfer services, from 15 per cent to 20 per cent. Notably, the Finance Act 2023 had previously reduced the excise duty on telephone and internet data services from 20 per cent to 15 per cent.”
The LSK boss added that the Bill has proposed removal of various tax reliefs put in place by the Finance Act, 2023, in relation to electric vehicles, motorcycles, buses and bicycles.
She said LSK emphasises the necessity of maintaining a stable tax regime in Kenya.
“Such stability is crucial for fostering an environment conducive to business operations and attracting foreign direct investment,” she explained.
Odhiambo regretted that the Bill further introduces various provisions that will increase the cost of living for many Kenyans.