ODM is rallying its MPs to shoot down the Finance Bill in an attempt to cushion Kenyans from burdening taxation measures being introduced by the Jubilee administration.
Party chairman John Mbadi made the announcement yesterday as he challenged Jubilee to account for the billions it was raising both locally and from foreign grants and loans.
Mbadi, who addressed the media at Capitol Hill, said if the Finance Bill that outlines the government’s annual revenue collection regime is passed in its current form, it will worsen the cost of living for ordinary Kenyans. “Kenyans have reached a point where they cannot take anymore taxation. The tax and steal policy, which Jubilee is employing, has failed Kenyans miserably,” he said.
The proposed law is expected in the National Assembly when MPs resume business after a 10-day recess. However, the Public Finance Management Act grants the Treasury interim orders to carry out taxation pending the passage of the Finance Bill.
“This increase remains a mirage. Jubilee has increased tax to the last coin and has borrowed as much as it can and continues to do so, both locally and from the foreign markets and agencies. What do you do with that kind of money, steal?” he asked.
The increase affects kerosene users more, majority of whom live in rural and poor urban settlements. It will have a direct impact on the cost of production, consumer goods, farming and the transportation industry as the government plans to raise Sh60 billion annually up from Sh40 billion for road maintenance.
This comes as the new taxation measures begin to take effect this Thursday with the implementation of a new fuel levy regime read out by Treasury CS Henry Rotich in his budget statement.
In October, VAT on basic commodities that was suspended in 2014 is also expected to take effect.
(+) the tax burden to increase
The other taxation measures that await the poor man’s depleted purse include increase in exercise duty and the reintroduction of the capital gains tax, rental income tax and the railway development fund for the first phase of the Sh327 billion standard gauge railway. The sum total of this is raising the cost of living which is laready too high. The increase in prices of diesel will not only increase the cost of transportation but also manufacturing of most products.