The Kenya Conference of Catholic Bishops (KCCB) has called for a review of the Finance Bill, 2024 terming it oppressive.
According to the bishops, the bill if passed in its current form will cause untold suffering to Kenyans.
While acknowledging the government’s effort to raise taxes through various policies, they took issue with some of the tax measures even as they raised concerns over the level of corruption in the country.
“We observe that addressing corruption and halting the wastage of available resources would generate sufficient revenue to support essential services, thereby reducing the burden on Kenyans who are already struggling with a high cost of living,” the statement signed by General Secretary James Waweru reads in part.
The bishops noted that the government has a responsibility to ensure that the citizens enjoy basic needs by initiating policies that serve the common good of the nation.
They have particularly faulted the government for introducing taxes on basic commodities like bread saying it will negatively impact the poorest in the community.
“ In the spirit of the social teaching of the catholic church emphasizes a preferential option for the poor, we reject any law that adversely the poor and impoverished,”
On the 2.5 per cent motor vehicle tax, they have observed that while it will improve tax collection and road infrastructure this would also burden Kenyans as transport fares would rise.
This new tax, they argued, will also increase operational costs for SMEs hence impacting their ability to invest in marketing, staff training and equipment upgrades.
At the same time, the clergy claimed that the eco levy on goods that negatively impact the environment such as mobile phones, diapers, microphones and plastic bags will undermine the government’s effort to support the digital and creative economy.
On the proposed increase in excise duty on financial transactions, the bishops noted that this would disproportionately affect lower-income customers pushing them towards cash transactions and informal money storage methods.
This, as it urged MPs to heed the people’s cries and revise the contentious clauses in the Finance Bill.
As a solution, the bishops suggested that the government establish a tax regime that is predictable and conducive to economic growth rather than one that stifles the private sector and over burden the poor and vulnerable.
