Atwoli Calls for MP Rejection of Worker Tax Hike Bills
Francis Atwoli, secretary general of the Central Organization of Trade Unions (COTU), has urged members of Parliament to reject any legislation that would increase tax withholdings on employees.
Atwoli, speaking at a funeral in Kakamega county, urged Ikolomani MP Bernard Shinali to withdraw the unemployment insurance authority measure that seeks to tax workers and allow those who have been suspended from work to receive pay.
According to Atwoli, many workers are scarcely surviving due to the high taxes imposed by the government, and he argues that the increments will result in a large number of informal workers earning pennies.
“I would want to plead with Shinali to abandon anything related to the employment levy because people’s payslips are being deducted heavily. We don’t have anything left on our payslips,” he said.
“If we have not yet become economically viable as a country we cannot be able to grow our economy. Kenya Kwanza is now putting a mechanism into place to see whether it can spur economic growth. But before that let us not add another burden to Kenyans.”
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The sentiments of Atwoli take place against the backdrop of a slew of newly imposed VAT increases in the Finance Act 2023, enacted by the government to revive the nation’s ailing economy.
Starting with the most controversial, the government announced that formal sector Kenyans will contribute 3% per month to the Housing Fund.
1.5% of the levy is paid by both the employee and the employer.
Another increase was made from 8% to 16% for petroleum products, and from 8% to 16% for the importation of pre-owned vehicles.
A 15% Excise Duty will be imposed on advertising fees for alcoholic beverages, gambling, gaming, lotteries, and prize competitions on television, print media, billboards, and radio.
As a result of the increase in Excise Duty to 15%, millions of Kenyans who use mobile money services will also pay more for these services.
Atwoli Calls for MP Rejection of Worker Tax Hike Bills
