Cotu secretary general Francis Atwoli has termed the move by the government to access individuals' M-Pesa transactions as ill-advised.
"The move to have access to and or investigate M-Pesa transactions is ill-advised and counterproductive," Atwoli said on Thursday.
He said the workers union has been advising various administrations against tax hikes that are, eventually counterproductive.
Atwoli said there are only 2.5 per cent of salaried Kenyans earn who above Sh 100,000 and a majority of close to 80.5 per cent earn below Sh50, 000.
"It was insensitive for the government to introduce punitive tax measures at a time when many workers had lost employment as a result of the pandemic," he said.
"The National Treasury must not always be in a rush to impose unreasonable taxes on a population that is hurting and bedridden, simply because the government needs money to spend on its development agenda."
He said the move will make Kenyans avoid using mobile money platforms which will in the end destroy an innovation that has eased the transfer of money.
Atwoli urged the government to crack down on outsourcing companies whilst formalising many jobs in the informal sector.
"The government should ensure that the more than 5,000 outsourcing companies regularise their employment terms and conditions of work for their employees by ensuring that they pay all the statutory deductions including PAYE and NSSF, NHIF," he said.
Atwoli said that if the government can clamp down on these companies that outsource labour, they will collect the much-needed taxes.
He urged the government to partner with the labour sector to formalise many jobs in the informal sector to ensure the government gets its fair share of the revenue.
"It is possible to collect taxes even from mama mboga if the government becomes innovative and uses incentives," he said.
