President William Ruto now has two options left following the approval of the controversial Finance Bill, 2024.
The bill, passed Tuesday, saw a total of 195 members voting to pass it and 106 rejected it.
As per the constitution on the procedures of enactment of the legislation, Ruto can either assent to the bill as it is or refer it back to parliament with amendments.
This should happen within 14 days of the receipt of the bill.
If he signs the bill into law, the proposed taxes take effect on July 1st.
This is the procedure
If he decides to refer it back for reconsideration, Parliament may amend the Bill in light of the president's reservations or pass it a second time without amending it.
In returning the bill, he has to point out key areas that need to be altered.
If the MPs amend the bill fully accommodating the President's reservations, the speaker shall then resubmit it to the president for assent.
If the House considers the president’s reservations, it may pass it a second time, without amendment, or with amendments that do not fully accommodate his reservations.
This must have, however, been supported by two-thirds of the members.
With the MPs set to go on recess beginning today until July 23, it means that should the President return the document to Parliament the speaker may have to recall them.
Some of the tax proposals which had earlier been introduced in the bill include 16 per cent VAT on bread, Excise duty on vegetable oil, VAT on transportation of sugar, 2.5 per cent Motor Vehicle Tax and Eco Levy on locally manufactured products have since been dropped.
The bill passed the committee of the whole house after these amendments were made.
The committee of the whole house format allows for detailed examination of each clause, ensuring thorough consideration before the bill progresses to subsequent stages of legislative review.
