Workers' unions have decried implementation of the planned tax regimes and urged Parliament to reject proposed amendments in the Finance Bill, 2023.
The Kenya Universities Staff Union secretary general Charles Mukhwaya said once passed, the bill will see total deductions from employees' monthly earnings shoot up to 52 per cent.
"...with a remaining net of 48 per cent still subjected to 16 per cent VAT for every purchase of goods and services, whose prices as we know are ever increasing," he added.
Mukhwaya said already as is, the statutory deductions are overburdening workers.
These include NHIF, NSSF, PAYE and Housing Fund levy among others.
He pointed out that public servants' salaries are protected by the law yet over taxation was going on unabated.
Mukhwaya was speaking on behalf of the public sector unions during a press briefing on Sunday in Nairobi.
He said the unions have resolved to consider taking industrial action should their demands not be met buy the government.
Among them demands is that the government reduces the taxes imposed on workers.
"We call upon the government to immediately engage with workers' representatives in the public service sector so as to agree on the best way forward," the unions said.
Further, the unions said the government should fast-track negotiations and implementation of all CBAs on salary increment for employees to accommodate the high deductions.
Earlier, chair of the Presidential Council of Economic Advisers David Ndii challenged those opposed to the proposed amendments to the Finance Bill to write an alternative budget that is cushioned from external shocks without International Monetary Fund (IMF).
He further suggested that they should also show how they can bring down the budget deficit without imposing any kind of tax measures.
"And do the numbers. As Sam Rayburn said, "any jackass can kick down a barn but it takes a carpenter to build one," Ndii said.
