Ndii’s Bold Response to Critics: Finance Bill 2023 Unveiled
David Ndii, the chief economic advisor to President William Ruto, rebuked Kenyans who oppose the Finance Bill 2023 on Sunday, May 7.
Ndii defended the Finance Bill 2023, stating that it was drafted with expert analysis and external factors such as the International Monetary Fund (IMF) in mind.
“Finance Bill opponents should sit down and draft an alternative budget that cushions external shocks without the IMF and reduces the deficit without tax measures.” And consider the numbers,” stated Ndii.
Dr. Ndii was responding to concerns raised after Prof. Njuguna Ndung’u, Treasury Cabinet Secretary, presented the Finance Bill 2023, which imposed new taxes with exemptions for certain goods.
For instance, lobbying groups criticized the 3% housing levy fund by questioning the selection criteria for beneficiaries of the same housing project.
Activists argued that mandating the housing levy overburdens workers who are already burdened by new NSSF deductions, NHIF rates, and pay-as-you-earn (PAYE).
The new bill proposes an increase in the personal income tax rate to 35% for individuals earning more than Ksh500,000 per month.
If the bill is passed, digital assets will be subject to taxation; a new Digital Asset Tax at a rate of 3 percent will be imposed on income derived from the transfer or exchange of digital assets.
Additionally, the new bill seeks to reinstate VAT exemption for exported services.
In addition, the bill proposes to eliminate the 8% VAT on liquified petroleum gas (LPG) and exempt it from VAT.
CS Njuguna sought to exempt LPG gas from taxation. By amending Section 43 of the Value-Added-Tax Act of 2013 to that effect.
President William Ruto previously pledged to reduce the price of LPG in the country.
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Consequently, the passage of the bill could assist the president in fulfilling his pledge. To reduce the price of cooking gas.
In the interim, the Departmental Committee on Finance and National Planning. Invited Kenyans to submit written comments on the Finance Bill, 2023 by May 20, 2023.
“By Article 118(i)(b) of the Constitution and Standing Order 127(3), the Departmental Committee on Finance and National Planning invites the public and interested parties to submit written comments on the Finance Bill 2023.
The memoranda should be addressed to the clerk of the National Assembly, P.O. Box 41842-00100, Nairobi; hand-delivered to the office of the clerk. Main Parliament buildings, Nairobi; or emailed to clerk.national.assembly@parliament.go.ke. No later than Saturday, May 20, 2023, at 5:00 p.m., according to a notice published in local newspapers.
This was not Ndii’s first time defending the government.
The economist confirmed the government’s commitment to pay public debts on April 10, 2023.
Ndii reassured the nation and the international community. That despite the government’s delay in paying civil service salaries, it would honor all of its public obligations.
“We are not bankrupt. We can finance payments. It is a significant sacrifice, but we can pay,” Ndii said in an interview with Citizen TV.
Kuria Kimani, chairman of the National Assembly Finance and National Planning Committee. Acknowledged that the country is in a state of debt distress but added that the situation is under control.
Ndii’s Bold Response to Critics: Finance Bill 2023 Unveiled
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