Muturi thwarts MPs' attempt to debate on VAT, sets vote for Thursday

Members of the National Assembly at Parliament Buildings during the budget reading, 2015. /MONICAH MWANGI
Members of the National Assembly at Parliament Buildings during the budget reading, 2015. /MONICAH MWANGI

Speaker Justin Muturi turned down attempts by a section of MPs to have President Uhuru Kenyatta’s memorandum on VAT as well as the Supplementary Appropriations Bill debated during Tuesday’s special sitting.

The Speaker insisted that the order of business clearly states that the president’s reservations on the Finance Bill, 2018, and the report of the Budget and Appropriations committee on the supplementary estimates for 2018/19 financial year will be held on Thursday.

"We would obviously be in breach of our standing orders and other traditions," Muturi said, adding that the memorandum has been referred to the Finance and National Planning Committee for directions.

Muturi was responding to Homa Bay Town MP Peter Kaluma who said since MPs from either side of the House appeared to have unanimously agreed to pass the budget cuts, there was no need for voting to wait until Thursday.

"I was just requesting Mr Speaker because the main issue as to why people we represent believe we are here concerns VAT, and it’s a matter which I know there is a conscious decision by members; it’s a matter we can put straight away," Kaluma said.

The president's proposals on Tuesday got a new lease of life after MPs from both sides of the house appeared to have reached a consensus to support them.

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On Tuesday, NASA parliamentarians made a U-turn and declared conditional support for the president’s proposals for cutting budgets for key sectors and various other austerity measures.

The head of state on Friday said this was aimed at raising more revenue to bridge revenue collection deficit which currently stands at over Sh70 billion.

The proposals include imposing 8 per cent value added tax on petroleum products, a move that had earlier been opposed by both NASA and Jubilee affiliate legislators.

However, in a statement read by deputy whip Junet Mohammed, NASA MPs said they will back the changes on condition that the 8 per cent VAT will be done away with after a year of its implementation.

"In light of the need to address the suffering of the people while ensuring development is also delivered, we recognize and appreciate that there was bilateral support for our attempt to remove VAT altogether and the President was able to meet us half way, lowering the tax from 16 per cent to 8 percent. NASA, therefore, offers its conditional support for the initiative to cut VAT from the initial 16 per cent to 8 per cent," Junet said.

He said the National Super Alliance will agree to sit down and negotiate the extension of VAT for another year if the government makes a genuine effort to implement certain proposals.

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They include genuine austerity measures across the board, elimination of extravagance, elimination of waste and completion of parastatal reforms.

The MPs made the statement after holding a parliamentary group meeting at Orange House, Nairobi, under the leadership of Raila Odinga.

Jubilee MPs also held a similar meeting at State House, Nairobi, where Majority leader Aden Duale said over 181 members of the party and its affiliates attended.

Duale said the MPs agreed to support the 5 areas that the president

expressed reservations on regarding the Finance Bill, 2018.

But even with the apparent unanimous decision to support the proposals, a section of MPs expressed their reservations during Tuesday afternoon's special sittings to discuss the matter.

Emuhaya MP Omboko Milemba asked the Speaker to give directives that voting on Thursday be an open vote so that Kenyans can see which members will betray them by approving the 8 per cent VAT on fuel.

"Honorable speaker, the matter we shall be looking at is the issue of tax and because that is a matter that really concerns Kenyans it was my plea that I beg your direction that when it comes to voting on that particular matter, because it raises the question of the integrity of the house (and) the independence of the house, that you allow when that voting is done, it be done publicly so that Kenyans can know who is for the Kenyans and who is not for the Kenyans," Milemba said.

Muturi, however, reminded the MPs that voting will be guided by the existing standing orders and that he had no powers to make changes concerning how voting should be conducted

in the house.

"I am unlikely to change merely because of excessive foot thumping. That’s not the way we make decisions here," Muturi said.

The speaker adjourned the sittings until Thursday when voting is expected to take place.

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