You can't achieve economic transformation by increasing taxes, Barasa tells Ruto

Finance bill, 2023 seeks to introduce tax on human hair, eyelashes, switches and artificial nails.

In Summary

• Barasa added that all 47 Governors were against the Finance Bill.

• The Governor urged members of the National Assembly to mind the state of Kenyans before voting on proposed amendments in the Finance Bill, 2023.

Kakamega governor Fernandes Baras at Malava township on Friday
Kakamega governor Fernandes Baras at Malava township on Friday
Image: FILE

Kakamega Governor Fernandes Barasa has advised President William Ruto to stop imposing taxes on Kenyans if he wants positive economic success.

Speaking on Thursday, Barasa said that Kenyans are already having a hard time facing the cost of living, and adding more taxes will overburden them.

“You cannot achieve economic transformation by overtaxing Kenyans,” he said

Barasa added that all 47 Governors were against the Finance Bill.

The Governor urged members of the National Assembly to mind the state of Kenyans before voting on proposed amendments in the Finance Bill, 2023.

He insisted that passing the Bill will only put more pressure on Kenyans considering that the cost of living is already high.

"That is why we are now calling upon the National Assembly to stand up and be guided by the principle of consciousness so that they don't push this agenda on partisan basis," Barasa said.

The amendments, if passed, will among other taxes increase the VAT on petroleum products from eight per cent to 16 per cent.

This is likely to trigger a hike in commodity prices amid the soaring cost of living that is burdening Kenyans.

The Bill also proposes a mandatory deduction of three per cent of salary to the National Housing Development Fund.

It also raises taxes from the current 30 per cent to 35 per cent on those earning Sh500,000 and above.  

The proposal includes a 15 per cent withholding tax on payments related to the monetisation of digital content.

Further, it seeks to introduce tax on human hair, eyelashes, switches and artificial nails.

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