Azimio leader Raila Odinga has criticised President William Ruto’s Finance Bill 2023.
Addressing a press briefing on Tuesday, Raila said that the finance bill is severely punishing middle-class people.
“The Bill prepared by Kenya Kwanza government is a punishment that Kenyans cannot and should not entertain, the Bill proposes amendments for various tax statutes including Income Tax Act, Value Added Tax, Tax Procedures Act and Miscellaneous Fees and Levies Tax among other laws,” he said.
According to the leader of the opposition, several proposed tax measures will have a significant negative impact on taxpayers.
This comes after the government proposed radical tax measures aimed at promoting local businesses, protecting jobs, and boosting manufacturing.
The government has proposed additional levies on imported goods such as steel, paper, plastics, and paints in the Finance Bill 2023.
The Bill also proposes to levy an export and investment promotion levy on all goods imported into the country for personal use that are listed in the Third Schedule of the Miscellaneous Fees and Levies Act, 2016.
The levy’s purpose is to provide funds to boost manufacturing, increase exports, create jobs, save foreign exchange, and promote investment.
The Bill seeks to impose excise duty on imported furniture, excluding furniture from the East African Community, in order to boost the Jua Kali sector.
Kenyan businesses will benefit from VAT exemptions under the proposed legislation.
VAT is currently payable when a business is transferred as a going concern, stifling business growth through restructuring.
However, the Bill has received harsh criticism from Kenyans, who want the Bill to be passed through public participation.
