Kanu chairman Gideon Moi has called on Kenyan Members of Parliament to reject the Finance Bill, 2024.
In a statement issued on Thursday, Moi expressed concern that any efforts to raise taxes to address the budget deficit would impose an undue burden on Kenyans. He further emphasized that economic experts are in agreement that Kenya’s primary challenge lies not in revenue but in expenditure.
Moi highlighted that while some punitive taxes have been eliminated, other equally burdensome ones have been quietly inserted into the Bill.
“Therefore, the National Assembly must reject the Finance Bill, 2024, in its entirety.
“The proposed amendments to clauses of the bill prescribing highly unpopular taxation measures have been cancelled out by other equally punitive proposals slipped into the bill,” Moi said.
The Kanu party leader noted that to achieve prosperity, the country’s leadership must prioritise industrialisation over taxation.
He said this will help expand the tax base and therefore they will be able to grow the revenue collection.
“KRA fell short of its projected tax revenues despite aggressive taxation measures introduced by the Finance Bill, 2023, indicating that higher tax rates do not necessarily result in higher tax revenue.
“To achieve economic prosperity, Kenya must prioritise industrialisation over taxation to progressively expand the tax base.”
Last week, Gideon Moi cautioned that the Finance Bill, 2024 could plunge more Kenyans into poverty if its tax proposals remain unchanged. He stressed that the National Assembly holds the key to revising the Bill to alleviate the burden of excessive taxation on citizens.
Moi criticized the government’s strategy of imposing taxes aggressively, warning that it could ultimately lead to a reduction in tax revenue, particularly during an economic downturn.
His remarks come amid widespread protests against the Bill, spearheaded by Kenyan youths, which commenced in Nairobi on Tuesday and extended to Mombasa on Wednesday.
Nairobi is set for another round of protests today, with Kisumu and Laikipia also joining the chorus against the Finance Bill, 2024. Despite some taxes being dropped ahead of the initial protests, a segment of Kenyans remains steadfast in their demand for the complete rejection of the Bill.
