Azimio leader Raila Odinga has stated that he will rally his troops to oppose the proposed Finance Bill 2023 when it is tabled in Parliament.
Speaking at a press conference on Monday, he described it as a “promissory note to strangle and suffocate the hustlers from whose necks Ruto promised to remove the rope,” and stated that he would do everything in his power to prevent the Bill from being passed in the National Assembly.
The Azimio leader claimed that Kenyans are being taxed to the bone and that Kenya Kwanza’a’s internal weaknesses are to blame.
“We will be instructing our members to pause this Bill’s proposals,” Raila said.
“In the event that Kenya Kwanza uses its hired majority and passes the Bill as it is, we want the people of Kenya to understand that it will be a Kenya Kwanza Bill.”
According to Raila, the proposed Finance Bill 2023 contains a “tsunami of taxes” that will “bury everyone”.
Raila says the proposed Finance Bill 2023 is “bad for the country and should therefore be rejected”.
According to Raila, there is deception written all over the Bill, which he claims will affect small and medium-sized businesses by taxing their gross sales regardless of whether they make profits or not.
Instead, the Azimio leader proposed keeping the tax at 1% and applying it to gross sales of Ksh.1 million or more.
“These businesses are already being taxed by County Governments,” he added.
The proposed income tax adjustment, according to the opposition leader, will further burden Kenyans, the majority of whom have not received a pay increase in the last five years.
He contended that direct taxation would reduce the country’s disposable income and have an impact on all sectors of the economy.
“As Kenya Kwanza reduces the local disposable income, it is inadvertently reducing the demand for local goods and services,” said Raila. “It leads to more unemployment and more desperation.”
At the same time, he took aim at the proposed Housing Fund, claiming that the proposed 3 percent salary deduction to fund affordable housing is “irrational” given that most employees are already dealing with reduced income due to high living costs.
“We find it curious that while not everyone qualifies for the proposed affordable housing regime, everyone is expected to pay. This is illegal borrowing,” Raila added.
In the Finance Bill, 2023, released on Thursday last week, the National Treasury proposes a three percent deduction on the basic salary towards housing development.
“An employer shall pay to the National Housing Development Fund in respect of each employee, the employer’s contribution at three percent of the employee’s monthly basic salary and the employee’s contribution at three percent of the employee’s monthly basic salary,” the Bill proposes.
He also questioned the logic of the Tax Appeals Tribunal proposal, which would require individuals or businesses to deposit 20% of the disputed amount with the KRA before the case could be heard.
“This is another aspect of illegal borrowing by the regime. It is open to abuse by rogue KRA agents. It will affect the cash flow of companies. We oppose it,” he said.
Raila also criticized the proposal for increased VAT payments as well as the increased excise duty on imported cement during his speech.
The proposed taxation on beauty products is also among the issues raised by Azimio.
The proposed 36% increase in wigs, false beards, eyelashes, human hair, and artificial nails, among other items, will affect youth and women currently employed in the industry, according to Raila.
Raila also accused the government of suffocating innovation by proposing a turnover tax on digital content monetization.
“From paying zero tax currently, a creative youth who creates a digital platform or content will be required to pay 15 percent tax. As a country, we will be killing innovation and leaving our youth with too few options, if any,” he added.
