Life is hard for the majority of Kenyans as the cost of living continues to skyrocket by the day. Prices of basic commodities including food items, fuel and electricity have doubled over the past year.
The average income for Kenyans is, unfortunately, continues to shrink. And in another few days, things are bound to become worse following the materialisation of the Finance Bill, 2023 that was signed into law by President William Ruto early this week.
The new law is bound to further hike taxes on basic goods and services including food and mobile money transfers.
It also imposes a 1.5 per cent levy on the salaries of all tax-paying Kenyans that will be matched by employers to fund an alleged affordable housing programme.
People who earn Sh500,000 a month will now pay 32.5 per cent in income taxes while those making Sh 800,000 will pay 35 per cent up from the current 30 per cent.
Sales tax for small businesses has also been tripled, from the current 1 percent to three percent. A new five percent withholding tax for digital content creators has also been introduced.
More importantly, the new law doubles tax on fuel, from the current eight percent to 16 per cent. Considering that every sector of the economy is fuelled by fuel, the increase in this tax is going to effect the rise in cost of almost everything else, except personal incomes of Kenyans.
We, as ordinary citizens are screwed, for lack of a better word. The Government has screwed us and the Opposition doesn’t seem to be offering practical solutions.
When the bill was presented to Parliament for debate and voting, the Members of Parliament affiliated to Government, predictably, voted for its passing. Unfortunately, quite a number of those in Opposition chose to stay away from the House, giving it an easy ride to become law.
And now the leaders of Azimio la Umoja One Kenya Alliance- the de facto Opposition that facilitated the bill to become law - are offering some not-so-very-practical suggestions on the way out the debilitating effects of the law.
Arriving from a 10-day stay in Poland on Tuesday, Azimio chief Raila Odinga called upon Kenyans to embrace civil disobedience to deny the government taxes that accrue because of the new law. Speaking at Kamukunji grounds, his first stop from the airport, Raila said this will be aimed at causing the revocation of the Finance Act.
Among the disobedience acts proposed for adoption is carpooling, which he argued will ensure reduction in fuel consumption hence minimising taxes collected on fuel and fuel products on whose VAT was raised. He also urged Kenyans to walk instead of driving! He called on matatu owners to retainin current fare but double the number of passengers and advised traffic police officers to look the other way as the former carried excess passengers.
The former Prime Minister further told businesses to disable or avoid using Electronic Tax Registers, make nil returns on VAT and instead give discounts to customers.
In his characteristic way, the 78-year old man, who spent most of his adult life in Opposition politics, urged artists to record and perform songs that reflect on the challenges that Kenyans are going through to push the government to act and lower the cost of living and discard the Finance Act. The Azimio leader also appealed to the online community to use their platforms to spread the boycott message.
All that is fine for a man credited with fighting for the right of opinion, expression and democracy. Weather it will work is what is in doubt.
What will definitely not work is the suggestion that Kenyans stop paying taxes though!
Taxation is an essential part of any functioning society, as it funds government services and infrastructure. However, when the tax burden becomes excessively burdensome, it is essential to explore practical solutions to alleviate the pressure on citizens.
Granted, in recent times, Azimio, , has been vocal about advocating for reduced taxes and government accountability. While their intentions are commendable, suggesting a simple boycott as a means to protest the tax burden overlooks the complexities of the issue. It is crucial for Azimio to offer practical civil disobedience approaches that can bring about real change in Kenya's tax system.
Calling for a general boycott of paying taxes may seem like an attractive idea at first glance, as it reflects dissatisfaction with the current tax system. However, it fails to recognise the realities of how taxes are deducted in Kenya.
Many taxes, such as PAYE , VAT, housing levy, NSSF and NHIF, are automatically deducted at the source. This means that boycotting taxes would be ineffective, as they are collected directly by employers, businesses, or the government itself. Simply put, boycotting is not a practical or feasible solution.
There are more practical ways though!
Azimio can play a pivotal role in advocating for meaningful tax reforms that address the concerns of Kenyan citizens, for instance. They can propose policy changes that ensure taxes are fair, equitable, and directly benefit the welfare of the people. This could involve urging the Government to review the tax structure, introduce progressive tax measures, and eliminate unnecessary taxes that burden the population.
One of the fundamental issues in the tax system is the lack of transparency and accountability in how tax revenues are utilised. Azimio can demand greater transparency from the Government regarding the allocation of tax funds, ensuring that they are used for the benefit of the citizens. By promoting accountability, Azimio can help restore public trust in the tax system and encourage compliance.
Instead of boycotting taxes, Azimio can focus on educating the public about the importance of taxes and how they contribute to societal development. They can engage with citizens, hold public forums, and provide accurate information about the purpose of different taxes. By fostering a sense of civic responsibility and understanding, Azimio can encourage individuals to support tax reforms and willingly contribute to the nation's progress.
The coalition can also forge alliances with other like-minded organisations, civil society groups, and stakeholders who are also concerned about the tax burden. By collaborating with economists, tax experts, and legal professionals, Azimio can develop well-informed and comprehensive proposals for tax reform. By working together, they can amplify their message and increase their chances of influencing policy changes.
While Azimio's intention to address the tax burden in Kenya is laudable, suggesting a boycott is not a practical solution due to the nature of tax collection in the country. Instead, Azimio should focus on offering practical civil disobedience approaches that can effectively bring about change. Otherwise, we may be cutting the very tree branch we are sitting on.
Political commentator