Don't overburden citizens with high taxes, fight corruption - Raila

ODM leader Raila Odinga addresses journalists at Opoda farm in Bondo on Saturday, September 8, 2018. /LAMECK BARASA
ODM leader Raila Odinga addresses journalists at Opoda farm in Bondo on Saturday, September 8, 2018. /LAMECK BARASA

ODM leader Raila Odinga has told the government not to overburden Kenyans with taxes and instead fight corruption.

He said the huge amount of money lost through graft is enough to clear the debts owed by the country.

"If we unite against corruption, then we will be able to raise funds for development without increasing taxes," Raila said.

Raila who addressed journalists on Saturday at his Opoda farm in Bondo said he is ready to give Finance Cabinet Secretary Henry Rotich advice.

He said the economy was improved during the Grand Coalition Government without imposing high taxes.

"I will advise him for free on how to go about the issue without hurting the common mwananchi," Raila said.

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He said the country must be able to meet its development needs without escalating the cost of living.

Raila said there must be a conversation on how to deal with the debt burden, even if it means consulting developed countries.

"We must find a solution for the 16% VAT fuel levy for the country to move in the right direction," he said.

The former Prime Minister said the country must remain united.

Rotich effected the 16% VAT on petroleum products on September 1, sparking an uproar from Kenyans.

On August 29, Members of Parliament had voted to postpone the fuel levy to September 1, 2020.

The amendment to the Finance Bill, 2018, moved in the National Assembly by Suna East MP Junet Mohamed, was meant to cushion Kenyans from the high cost of living.

In justifying the implementation of the levy, Rotich, however, said the imposition of VAT on petroleum products is primarily to improve tax collection efficiency.

He said VAT is a broad-based tax and should, therefore, have limited exemptions in order to reduce or eliminate revenue leakages.

Rotich noted that under the VAT Act, most of the VAT associated with petroleum products is not claimable due to the exempt status of the products.

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