Azimio to Opposition MPs: Reject Ruto’s Tax Proposals Completely

Azimio la Umoja One Kenya Coalition has instructed its MPs to reject the Finance Bill, 2024, without exception. Notably, Azimio principal Kalonzo Musyoka emphasized that Opposition lawmakers must completely oppose President William Ruto’s tax proposals.

Azimio principal and Wiper leader Kalonzo Musyoka addressing a press conference on June 14, 2024.

Kalonzo’s Call to Action

“We reaffirm our stand that all well-meaning Kenyans must oppose the Finance Bill, 2024, and have thus instructed all our parliamentary members to lead from the front in rejecting this punitive Bill in its totality,” Kalonzo said during a press conference on Friday.

Public Support and Engagement

Kalonzo praised Kenyans who have actively urged their MPs to vote ‘No’ through phone calls, text messages, and social media initiatives. “This peaceful assertiveness and engagement will eventually become the norm, especially under our leadership as the government in waiting,” he stated.

Impact of the Finance Bill, 2024

The Finance Bill, 2024 aims to expand the tax base and increase revenue collection from Kenyan citizens through various new tax measures. Kalonzo warned that the Bill, if implemented, would significantly raise production costs, destroying the industry’s ability to compete, resulting in closures and job losses.

Focus on Economic Growth“Azimio believes that our country’s focus should be on helping enterprises and the manufacturing industry to create jobs and wealth, increase productivity, cut living costs, and, finally, bring prosperity to Kenya,” Kalonzo said. He expressed concern that bread and other necessities would now be subject to standard-rated VAT instead of zero-rated VAT, which would directly affect household spending and drive up the already expensive cost of living. Punitive Tax Measures

He further highlighted that the majority of the tax measures in the Finance Bill, 2024, are punitive with substantial consequences for Kenyans. He regretted that the proposed tax measures would raise the cost of essential goods and services, further burdening the public.

Law Society of Kenya’s Warning

On June 7, the Law Society of Kenya (LSK) warned that Ruto’s proposed tax measures would reverse gains made to achieve national equality. LSK President Faith Odhiambo stated that introducing additional tax burdens on lower-income Kenyans, who already struggle with the high cost of living, directly impacts their livelihood and quality of life.

Reversal of Previous Gains

Odhiambo noted that the new proposals seem to reverse the various exemptions and benefits introduced by the Finance Act, 2023. “The Bill proposes to increase the excise duty rates applicable to telephone and internet data services, as well as money transfer services, from 15 percent to 20 percent. Notably, the Finance Act 2023 had previously reduced the excise duty on telephone and internet data services from 20 percent to 15 percent,” she said.

Removal of Tax Reliefs

The LSK President added that the Bill proposes removing various tax reliefs put in place by the Finance Act, 2023, concerning electric vehicles, motorcycles, buses, and bicycles. She emphasized the necessity of maintaining a stable tax regime in Kenya. “Such stability is crucial for fostering an environment conducive to business operations and attracting foreign direct investment,” she explained.

Increased Cost of Living

Odhiambo regretted that the Bill introduces provisions that would increase the cost of living for many Kenyans. She highlighted the need for a stable tax regime to support economic growth and improve the quality of life for all citizens.

Conclusion

Azimio la Umoja One Kenya Coalition remains steadfast in its opposition to the Finance Bill, 2024. Kalonzo Musyoka and other leaders continue to urge their MPs to reject the Bill entirely. Public support and engagement are crucial in this effort to prevent the implementation of punitive tax measures that would burden Kenyan citizens further. The coalition calls for a focus on economic growth, job creation, and reducing the cost of living to bring prosperity to the nation.