Illegal to tax mama mboga, critics threaten suit

Rights defenders have opposed the Turn Over Tax, also known as the Mama Mboga Tax, saying it will open avenues for fraudsters and corrupt officials to harass small-scale traders. 

The latest to oppose the tax is the Kenya Tuitakayo Movement that met on Friday to reject the Turn Over Tax, calling it unjust, unconstitutional and impossible to implement.

They said they will challenge the tax in court if the Treasury Secretary does not respond to their petition and immediately cancel the tax, then ensure it is repealed. repeal it.  

The group said the tax will entrench inequality in society and impoverish the poorest people struggling to survive.

“This tax will open avenues for corruption and harassment. It is meant to impoverish people and it is immoral to make people poor,”  co-convener of the Kenya Tuitakayo Movement Francis Kuria said.

They said the new tax violates Article 27 of the Constitution, which prohibits discrimination and requires equal treatment by law.

“The passage of this new Mama Mboga Tax is very unfortunate given the current high levels of unemployment with many political leaders asking our young people to venture into business and employ themselves,” Kuria said.

The group said the Kenya Revenue Authority has been unable to meet its revenue targets due to a sluggish economy and revenue leakage and is now squeezing money from the poor, like trying to get blood from a stone.  

"The solution is not to target the poor but instead seal revenue leakages and stop corruption to obtain value for money and avoid inflation," they said in a statement.

The tax is similar to the Poll Tax by the colonial government and the current government will not and cannot be allowed to tax people "for being alive". 

They said the government cannot claim the Turn Over tax will be simpler for businesses to administer because according to the Finance Act, 2019, the law requires maintenance of records for tax administration.

“Small business operators like the mama mbogas, kiosk owners and roadside traders will be required to maintain records dating back seven years. It is impossible for them to get records for the last seven years, making it difficult for the government to administer, " Kuria said.

Kenya Tuitakayo called on the president and the Treasury CS to immediately halt and eventually repeal the tax measure completely.

“We will be delivering a petition to the Cabinet Secretary of the National Treasury in the next three weeks signed by the affected groups. If there is no action on our appeal, we will move to court," Kuria said.

(Edited by V. Graham)