Raila Odinga, the Azimio leader, has criticised the Finance Bill 2024, claiming that it contradicts Kenyans’ expectations that the government would reduce the tax burden.
In a statement released on Friday, the Opposition chief stated that the tax proposals contained therein are regressive and “ruthlessly against the poor.”
He stated that the proposed new taxes on basic necessities will disproportionately affect the poorest of the poor.
“Should it be ratified, low-income people will be hit with taxes on multiple fronts and will end up paying more than people with higher incomes,” Raila
The proposed increase in mobile money transfer fees from 15% to 20%, according to Raila, is one of the tax proposals that will harm ordinary Kenyans.
He also listed the proposed 16 per cent VAT on foreign exchange transactions, 16 per cent tax on bread and 25 per cent Excise duty on edible oil.
Raila also mentioned the Eco Levy, which will tax items like diapers and mobile phones, as well as the introduction of a 16% VAT on insurance and reinsurance services.
“It must be remembered that the tax measures put in place last year and which led to violent protests have subjected Kenyans to a great deal of trauma but bore no fruit. They led to closure and relocation of businesses,” Raila said.
The Azimio CEO also chastised the government for planning to impose a 2.5 percent Motor Vehicle Tax, claiming that it would amount to double taxation because car owners are already taxed on multiple fronts.
He warned that if the Finance Bill is passed in its current form, it could lead to the collapse of an already fragile economy, “with the poor bearing the brunt of the consequences.”
