Recall MPs in favour of tax proposals – lobbyists

Coast civil society organisations are pushing residents to recall any legislator who will support the Finance Bill, 2023.

The bill, the say, will push the already high cost of living even higher.

Led by chairman Zedekiah Adika, the Coast Civil Society Network on Human Rights said on Monday the bill has more negatives than positives.

“Leadership should listen to people. If you do not listen to people, you have no business being in leadership,” he said.

Haki Yetu Organisation, which leads the governance thematic group in the network, said any meaningful conversation on taxation, and in particular on the Finance Bill, 2023, should factor in the realities of the cost of living.

Haki Yetu legal officer Munira Ali said the network opposes proposals that are likely to push the cost of living higher and beyond the reach of most Kenyans.

These include the increase in VAT on petroleum products from eight to 16 per cent, tax increase on mobile money transfer and digital lending fees and increase in turnover tax rate to three per cent.

Others include introduction of a Sh5 excise duty per kilo of sugar, the mandatory three per cent housing fund and the introduction of 15 per cent withholding tax on digital content monetisation.

“While we acknowledge the need for the government to raise revenue to meet its obligations, we opine that this cannot be at the expense of imposing further taxes to an already overburdened public,” Ali said.

She said leadership should listen to people and the government should cut its wastage, curb corruption, reduce the wage bill and stop unnecessary borrowing.

Haki Yetu programme officer Peter Kazungu said "the Kenya Kwanza government promised heaven and is now delivering hell".

Instead of increasing taxes, Kazungu said, the government can start saving the more than Sh700 billion looted annually by sealing all loopholes.

He said despite the pressure of repaying the more than Sh9.3 trillion debt, the government should start by cutting down the size of government.

“A broke government should not be recruiting 51 PSs and 51 CASs in only 22 ministries,” Kazungu said.

The many unnecessary trips both domestic and foreign by top government officials led by President William Ruto and his deputy Rigathi Gachagua should stop, he said.

“Every week, we see the DP in Mombasa launching small things like boats. These are assignments that can be done by junior officers based in Mombasa,” Kazungu said.

He said housing is not one of the priority worry of Kenyans at the moment and the three per cent housing levy should not be imposed on them.

The human rights defenders handed their petition to Mombasa Senator Mohamed Faki and Woman Representative Zamzam Mohamed who further criticised the government for trying to bulldoze the bill through Parliament.

Faki said they have done consultations with residents at the Coast, majority of whom are opposed to the bill.

He said only a few items in the whole bill are beneficial to Kenyans. Faki said they include the proposal to exempt LPG gas from VAT and Import Declaration Fee, and reduction of the Import Declaration Fee and Railway Development Levy from 3.5 per cent to 2.5 per cent as well as the reduction of excise duty on telephone and internet from 20 to 15 per cent.

“This government is more concerned with rewarding their failed political loyalists than working for the people,” he said.

Woman Representative Mohamed said the government promised over a million jobs but instead is causing layoffs because of the pressure of the poor economic situation.

“Today, where the youth want to employ themselves, through content creation, you want to take away the little they earn,” she said.

“You told us this will be a government of hustlers. Today, it is the hustler is who is being pushed to the wall oppressively.” 

She told Mombasa residents to keep their eyes wide open and look out for any MP who will support the Finance Bill, 2023.