Azimio, Led by Raila Odinga, Remains Determined to Block Finance Bill 2023 by President William Ruto
Former Prime Minister Raila Odinga’s Azimio la Umoja continues to oppose President William Ruto’s efforts to pass the Finance Bill 2023.
As the Bill nears its third and final reading in Parliament on Tuesday, June 20, the opposition leader announced plans to oppose Ruto’s proposal to increase the value-added tax on petroleum products from 8% to 16%.
Raila, despite facing stiff opposition from Ruto’s zealots, introduced on Monday, June 19, through legislators affiliated with Azimio, new proposals to reverse the provisions of the Finance Bill 2023.
Opiyo Wandayi, leader of the minority in the National Assembly, disclosed that Azimio had submitted amendments to the Finance Bill 2023 to prevent Kenya Kwanza from doubling fuel VAT from 8% to 16%.
Wandayi, speaking to the media on Monday, June 19, argued that doubling the VAT would cripple the economy, particularly the transport sector, in contrast to Kenya Kwanza supporters who argued that it would stimulate the economy.
Wandayi, who also serves as a member of parliament for Ugunja, stated, “We intend to remove the increase in VAT and revert to 8% VAT through the proposed legislation.”
President Ruto defended the increase, noting that the funds collected will fund infrastructure projects in the coming years.
ALSO READ: Exploiting Finance Bill Mistake, Azimio Targets Ruto with Political Pressure
Ruto stated during a joint media interview at State House on Sunday, May 14: “The 8 percent will give us Ksh50 billion to deal with roads across the country.”
Wandayi added that Azimio had submitted nine additional amendments to the Finance Bill 2023 before Tuesday, June ’20s scheduled third reading.
Azimio hopes to frustrate the majority into considering its proposals before the passage and ascension of the bill. The opposition emphasized that it was a race against time to convince Ruto not to implement the tax increases on July 1.
“By the end of business on Friday, June 16, more than ten members on Azimio’s side had submitted amendment proposals. I am aware that the number could now be higher,” Wandayi revealed.
In addition to contesting the 16% fuel VAT, Azimio promised to contest the proposal to exempt aircraft importers from paying the 16% Value-Added Tax (VAT) while eliminating the 3.5% import declaration fee (IDF) and the 2% Railway Development Levy (RDL).
In his proposal, Alego Usonga representative Samuel Atandi aimed to amend that section of the bill to reinstate VAT on imported choppers. Ruto had previously defended the clause, arguing that it would create job opportunities for Kenyans in the aeronautics industry.
ALSO READ: President Ruto and Deputy Gachagua Act to Address MP Gathoni Muchomba’s Opposition to Finance Bill, 2023
In contrast, Embakasi East Member of Parliament Babu Owino vowed to oppose the 1.5% housing tax. Babu Owino insisted that the tax will increase the national unemployment rate.
The government was compelled to reduce the deduction from 3% to 1.5% while removing the Ksh2,500 ceiling. Employees and employers will each contribute 1.5 percent to the Housing Fund project, for a total contribution of three percent.
Kuria Kimani, chairman of the Finance and Planning Committee of the National Assembly, confirmed that he forwarded Azimio’s amendments to the Treasury for consideration, giving the opposition cause for optimism.
“As of now, I am aware of nine letters sent to the clerk and speaker of the national assembly. Several members of parliament have made amendments, and some of those amendments are similar to those in our report, said Kimani Kuria.
Kuria insisted, “We have forwarded these amendments to Treasury to determine their financial implications, as the Finance Bill is a money bill.”
Azimio, Led by Raila Odinga, Remains Determined to Block Finance Bill 2023 by President William Ruto
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