Governors to join MPs in challenging tax law in court, says Wangamati

Bungoma Governor Wycliffe Wangamati, KNUT SG Wilson Sossion and Bungoma MP Catherine Wambilianga cut a cake at Masinde Muliro Webuye campus on Friday, September 21, 2018. /BRIAN OJAMAA
Bungoma Governor Wycliffe Wangamati, KNUT SG Wilson Sossion and Bungoma MP Catherine Wambilianga cut a cake at Masinde Muliro Webuye campus on Friday, September 21, 2018. /BRIAN OJAMAA

Governors will join MPs opposed to the Finance Bill, 2018 in filing a case in court to stop the implementation of the new tax measures, Governor Wycliffe Wangamati has said.

President Uhuru Kenyatta , effectively ushering a tax regime that will see Kenyans pay an 8% VAT on fuel.

The Bungoma governor, who is chairman of the Council of Governors' Trade and Investment Committee, castigated the president for assenting to the legislation.

He said the new tax measures, which also include duty on money transfer, internet data, confectionery, among others has overburdened the common wananchi.

Wangamati said corruption and excessive debt borrowing is to blame for the hard times the country is facing even as some MPs threatened to seek court redress on Monday.

"The council of governors met Treasury officials on Thursday over the Finance Bill before it was passed and advised them on its negative impacts on wananchi."

The governor spoke at Masinde Muliro Webuye town campus during the Bungoma East Kenya National Union of Teachers AGM on Friday.

The meeting was attended by ODM Nominated MP Wilson Sosion - KNUT secretary general, and Bungoma woman MP Catherine Wambilianga.

"At this rate as a country we are deeply worried and concerned that we might go way of countries whose national assets have been seized by the creditors," he said.

"Let Uhuru and DP William Ruto know that the solution to managing the economy of this country is not just about increasing taxation," Wangamati added.

"It is important we go back and understand the fundamentals where we have gone wrong in terms of strengthening the economy of this country."

Wangamati argued that increased taxation has a counterproductive effect on all sectors of the economy, and sets stage for inflation.

He also opposed the Sh300 million budget cuts affecting the 47 devolved units saying the county budget making process was at advanced stages.

"We have done public participation...it is not fair that someone comes in the middle of a financial year saying that there must be cuts."

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