By Eddah Waithaka
The Opposition Coalition is urging leaders to reject the Finance Bill 2024, which will help fund the Sh 3.9 trillion budget for the next financial year 2024/2025.
Azimio co-principal Kalonzo Musyoka cautioned that if the National Assembly passes the proposed legislation, every Kenyan citizen could potentially face an extra burden of Sh 24,000 in taxes.
Musyoka reaffirmed the opposition’s determination to strongly oppose the bill even though they hold a minority position in the house.
“If the bill is enacted as proposed, Kenyans must brace themselves for substantial financial strain in the form of increased taxes under the Kenya Kwanza regime,” Musyoka stated.
“We understand that ordinary citizens, including small-scale traders like Mama mboga, stand to gain nothing from this bill, as it primarily targets them for the second time.”
Accusing the government of subjecting Kenyans to punitive tax measures, the Wiper leader criticised the government’s approach.
He claimed that Sh1 trillion out of the Sh3.9 trillion budget was essentially allocated to recurrent expenditure in various government departments, which he described as ‘budgeted corruption’.
The Raila Odinga-led coalition also identified six contentious tax proposals in the Finance Bill, advocating for their rejection.
One such proposal includes a 16 percent tax on bread, potentially increasing the price of a 400-gram loaf by approximately Sh10.
They have also strongly opposed a new tax on motor vehicles, which proposes a 2.5% tax on the value of motor vehicles, with a minimum of Sh 5,000 and a maximum of Sh 100,000.
The coalition argues that this will elevate the cost of car ownership and result in higher insurance premiums.
The wiper leader further highlighted the new withholding tax on digital marketplaces, which imposes a 20% tax on non-residents and a 5% tax on residents’ income from digital platforms.
He said that this would raise tax compliance expenses for digital marketplace operators.
Additionally, the Azimio La Umoja underscored that the eco-levy tax, aims at fostering a circular economy to manage waste, will inflate the prices of essential commodities, including bread and cooking oil.
