Ruto’s Decision on Finance Bill 2023 Awaits
President William Ruto must now take action on the contentious Finance Bill, 2023, which was approved by the National Assembly on Wednesday evening.
The Bill foretells difficult times ahead for Kenyans, as the majority of the new taxation measures go into effect the following Sunday, July 1, 2023.
Kuria Kimani, chair of the Finance and Planning Committee of the National Assembly, stated that the controversial housing levy will be ring-fenced to ensure the success of the affordable housing agenda.
The amended housing levy clauses of 1.5% were among the 12 new clauses that sailed through the committee stage of the Bill in the House of Representatives.
Despite the opposition of the Azimio MPs, the Kenya Kwanza legislators overwhelmingly supported the proposal to impose a tax on all salaried Kenyans beginning with salaries in July 2023.
ALSO READ: Parliament Rejects Three Finance Bill 2023 Changes Amidst Opposition-Government Clash
After undergoing an amendment, the tax passed with 184 votes in favor and 72 opposed.
“An additional clause was added to specify that the housing tax can only be used for the construction of affordable housing, and not for any other purpose, such as paying loans or salaries,” Kimani explained.
Paul Katana Kahindi, a member of parliament for the district of Kaloleni, stated, “Kenyans will hold us accountable for our actions.” The opposition will be counted.”
The Finance Bill 2023 is currently awaiting President Ruto’s approval. Even though the Head of State has two weeks before assenting to the Bill or returning it to Parliament for modifications through a memorandum, Kimani stated that Ruto will prioritize signing the Bill into law, as the majority of clauses, including the 16% VAT on fuel, will go into effect on July 1, 2023, coinciding with the beginning of the new fiscal year 2023-2024.
“Some clauses will take immediate effect because they complement the budget. We, therefore, expect the President to decide within fourteen days,” Kimani added.
The Chairman of the National Assembly Finance Committee reprimanded Trade and Investment Cabinet Secretary Moses Kuria for proposing to remove a 35% duty on edible oils and replace it with a 10% export and investment promotion duty, stating that his ministry does not have the authority to do so.
“The Constitution makes it abundantly clear that the legislature is the lawmaker. “The buck stops with Congress, not with state agencies,” he said.
Kimani, who is also an MP for Molo, spoke during the examination of Mary Wanyonyi Chebukati’s nomination for Commission on Revenue Allocation (CRA) Chairperson.
Ruto’s Decision on Finance Bill 2023 Awaits
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