Nairobi — The Opposition Coalition has now set its sights on challenging the provisions of the Finance Bill 2024, which is poised to underpin the financing of the Sh 3.9 trillion budget for the upcoming financial year 2024/2025.
Azimio co-principal Kalonzo Musyoka warned that each Kenyan citizen might have to shoulder an additional Sh 24,000 in taxes if the proposed legislation is passed by the National Assembly.
Musyoka reaffirmed the opposition's commitment to vehemently contest the bill, despite their minority status in the house.
"If the bill is enacted as proposed, Kenyans must brace themselves for substantial financial strain in the form of increased taxes under the Kenya Kwanza regime," Musyoka stated.
"We understand that ordinary citizens, including small-scale traders like Mama mboga, stand to gain nothing from this bill, as it primarily targets them for the second time."
The Wiper Leader criticized the government's approach, accusing it of subjecting Kenyans to punitive tax measures.
He alleged that Sh 1 trillion of the Sh 3.9 trillion budget is essentially allocated to recurrent expenditures in various government departments, which he described as 'budgeted corruption.'
The Azimio La Umoja Coalition has raised concerns about the Sh 23.6 billion increase in recurrent expenditures, including allocations to the Ministry of Foreign Affairs (Sh 1.4 billion), the National Treasury (Sh 6 billion), and the Ministry of Transport (Sh 1.3 billion).
"This is not development but blatant embezzlement disguised as expenses for tea, snacks, and flowers," Musyoka remarked. "It's their turn to feast."
The Raila Odinga-led coalition identified six contentious tax proposals in the Finance Bill, advocating for their rejection.
One such proposal includes a 16 percent tax on bread, potentially increasing the price of a 400-gram loaf by approximately Sh10.
They have also strongly opposed a new tax on motor vehicles, which proposes a 2.5% tax on the value of motor vehicles, with a minimum of Sh 5,000 and a maximum of Sh 100,000.
The coalition argues that this will elevate the cost of car ownership and result in higher insurance premiums.
Musyoka highlighted the new withholding tax on digital marketplaces, which imposes a 20% tax on non-residents and a 5% tax on residents' income from digital platforms.
He asserted that this would raise tax compliance expenses for digital marketplace operators.
Additionally, the Azimio La Umoja underscored that the eco-levy tax, aimed at fostering a circular economy to manage waste, will inflate the prices of essential commodities, including bread and cooking oil.
"If this bill becomes law, it will significantly escalate production costs, impair the industry's competitiveness, lead to closures, and result in job losses. Consequently, our local and export markets will suffer, and retail prices will soar, burdening the mwananchi," Musyoka warned.
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The proposed law targets a range of items, including diapers, rubber tyres (for wheelbarrows and wheelchairs), batteries, pencil sharpeners, staplers, printers, calculators, photocopying machines, coin counters, and wrapping machines.
The National Environment Management Authority has projected revenue of Sh54 billion from this levy.
The National Assembly Finance and Planning Committee has now retreated to draft its report on the tax proposals following the completion of public participation hearings.
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