Azimio leader Raila Odinga has criticised the Finance Bill 2024 saying it goes against the hopes of Kenyans who expected the government to lessen the tax burden.
In a statement on Friday, the Opposition chief said the tax proposals contained therein are regressive and “goes ruthlessly against 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 said.
He said the new taxes have been proposed to be imposed on basic necessities and will disproportionately hurt the poorest of the poor.
Among the tax proposals, Raila said will hurt the ordinary Kenyan is the proposed hike of mobile money transfer fees to 20 per cent from the current 15 per cent.
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.
Other taxes Raila want reviewed are the proposed 16 per cent on sugarcane transportation and Import Declaration fees which the Bill proposes to raise from the current 2 per cent to 3 per cent.
Raila also listed the Eco Levy which will see items such as diapers and mobile phones being taxed and the introduction of a 16 per cent VAT on insurance and reinsurance services.
The Azimio boss also chided the government for intending to introduce a 2.5 per cent Motor Vehicle Tax saying it will amount to double taxation since car owners are already being taxed on a number of fronts.
“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.
He warned that should the Finance Bill be passed in its current state, the move could result in the collapse of an economy that is already on the brink “and the poor will be the hardest hit”.
“The tax proposals for 2024 will make an already bad situation worse. If we expect business to invest in Kenya, then we cannot afford a tax policy that shoots up and down and keeps swinging like a pendulum,” Raila said.
