Shakeup for Ruto as Finance Bill Hearing Unveils Startling Concerns
During hearings held by the National Assembly Finance Committee on Friday, May 27, 55 of 66 groups opposed the proposed Finance Bill 2023. As a result, the administration of President William Ruto faces an uphill battle.
According to a statement issued by the National Assembly, several lobbying organizations and workers’ representatives voiced opposition to the proposed Housing Fund and tax increases on a variety of products.
Specifically, the Kenya Airline Pilots Association proposed that the Housing Fund be voluntary because a subset of working Kenyans had already made substantial housing investments.
The team also suggested that the public lacked sufficient information about the project, making it extremely difficult for them to support Ruto’s proposals.
Thus, they urged the government to engage in public education.
Another concern regarding the Housing Fund was that contributors did not have the option to select the design and model of government-built houses.
The statement read in part, “The association proposed that the housing levy be made voluntary for those wishing to own houses under a government program and that the government suspend the housing plan until there is an increase in salaries and a reduction in the cost of living.”
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On the other hand, the Petroleum Institute of East Africa proposed changes to the taxes on petroleum products that would permit oil marketers to seek refunds for the products within the nation.
The team noted that the move would significantly benefit the public by making fuel more affordable.
“Kenyan surveyors also argued against the implementation of a withholding tax on rental income collected by agents appointed by the Commissioner.
“The Institute noted that it would be impractical to remit tax within 24 hours due to the required logistics and the occasional portal congestion,” the statement read in part.
Other taxation plans opposed during the hearings included a 15 percent withholding tax on digital content creation and a 3 percent Digital Asset Tax (DAT).
Timelines
On the first day of the Finance Committee’s hearings, on May 21. Representatives of key organizations such as the Law Society of Kenya (LSK) testified.
According to the National Assembly. The Bill must be approved by the 30th of June before the enactment of the Appropriation Law, 2023. Which specifies how the government raises funds to fund the budget.
On Thursday, June 8, Treasury Cabinet Secretary Njuguna Ndung’u will reportedly deliver the Budget Statement.
Implications for Ruto
As a result of opposition to some of the taxation proposals. MPs and the Treasury will be required to review some of the taxation laws and seek alternatives to fund Ruto’s first budget.
Shakeup for Ruto as Finance Bill Hearing Unveils Startling Concerns
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