Nairobi Senator Edwin Sifuna has urged Governor Johnson Sakaja to listen to the voices of the city residents on the high cost of living as well as the proposed Finance Bill, 2023 which, among other things, looks to introduce taxation on a wide range of issues.
Senator Sifuna intimated that it is Governor Sakaja’s secondary job to listen to the complaints of Nairobians and then transmit them to the government of the day, on whose party ticket he was elected hence presumably belongs to.
Speaking on Thursday when Nairobi joined other counties in marking the Madaraka Day celebrations, Sifuna noted that the economy of the country’s capital is downtrodden and that residents are complaining about the high costs of products such as maize flour.
He stated that the proposed taxes captured in the Finance Bill will not alleviate the burden that the ordinary mwananchi is already facing, but rather only serve to increase it.
“Serikali hii yenu imeleta mswada kwa Bunge kusema mtu wa salon pia yeye alipe ushuru ya weave na makucha fake. Ati leo nikipata ajali alafu insurance inilipe bado mnataka ushuru….inawezekana kweli?” Posed Sifuna.
“Nyinyi mlisema mnatetea watu wa chini; lakini ati kama uko na kiosk, ukiuza unga pakiti tano pekee yake wanakupiga witholding tax, yaani mama akiuza samaki tano kwa soko mnataka ushuru, akieka nywele mnataka ushuru. Sisi watu wa Nairobi tunapinga huo mswada kwa sababu tumechoka na mzigo, msituongezee mzigo zaidi.”
“Maisha imetushinda hapa Nairobi. Bei ya unga imeshinda hawa watu. Sisi watu wa Nairobi tunapinga huo mswada (Finance Bill) kwa sababu tumechoka na mzigo. Punda imechoka. Msituongezee mzigo zaidi.”
The proposed Finance Bill, 2023 is also seeking to deduct 3 per cent from Kenyans’ basic salary towards the National Housing Development Fund matched by another 3 per cent from the employer.
Further, the National Treasury is proposing that PAYE be graduated to 35 per cent for individuals earning more than Ksh.500,000 from the current 30 per cent in its efforts to expand the tax base.
In order to empower the taxman, the Bill also seeks to have all individuals or entities tied in disputes with KRA at the Tax Appeals Tribunal, deposit 20 per cent of the disputed amount, or any security equivalent to the same amount with KRA as the matter is being resolved.
Digital content creators will also be subjected to withholding tax of 15 per cent for all content that they monetize.
Still on the digital space, exchange of any digital assets including cryptocurrencies, token code, and Non-Fungible Token (NFTs) will be subjected to the new digital tax.
The Finance Bill proposes an amendment to Section 5 of the Income Tax Act to ensure employees’ per diem, known as cash allowances, are duly taxed.
The new proposal will grant the government legal mandate to partner with employers to establish a working mechanism to see employees pay their fair share.
