The Finance Bill 2024 has sailed through to the second reading after Members of Parliament voted 204 yes against 115 who voted no.
The move now gives the legislatures opportunity to offer amendments to the bill either expunging or retaining parts of it. On Tuesday, Parliamentary Committee said after public participation, they have proposed various amendments to drop VAT on bread, motor vehicle tax, exempt Small and Medium Enterprises with turnover less than Ksh1 million from e-tims registration among other amendments.
Before the voting on Thursday, the bill was subjected to intense debate on Tuesday and part on Wednesday with members largely drawn from the opposition arguing that the proposed tax measures would burden Kenyans whom they noted are already facing the tough economic times.
The legislatures who voted for the bill however argued that the proposals in it offer a solution to various challenges currently facing the country. “I have listened to my colleagues opposing the bill, I would urge them to stop misleading Kenyans and stop misrepresenting issues,” said Kimani Kuria, the Chairman Finance and National Planning Committee.
“There is nowhere the bill proposes to tax cancer patients neither has it proposed to tax non-monetised digital content.”
The other members who voted yes noted that the bill will open opportunities for employment especially for teachers, create more money for constituency development, improve infrastructure and increase electricity and water access.
Those who opposed the bill said it was a direct ticket to overburdening Kenyans financial with some arguing that the government instead of increasing the taxes should think reducing its expenditure.
“I reject the bill because it touches on everything the common mwananchi relies on,” said Felix Oduor, MP for Langata. Nairobi Women Representative Esther Passaris said it was time to listen to the plights of the people and take action.
Few meters away from the Parliament where the voting of the controversial bill took place, Kenyans engaged police in running battles to protest tax measures in the bill. The taxes are projected to raise Ksh346.7 billion equivalent to 1.9 per cent of GDP, and reduce the budget deficit from 5.7 per cent to 3.3 per cent of GDP.
Similar protests associated with the Gen Z were also witnessed in Eldoret, Nairobi, Kisumu, Kakamega and Kilifi towns.
Finance Bill 2024: Treasury Warns of KShs. 200bn Hole, Budget Cuts – Kenyan Wall Street – African Business and Global Finance
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