Tackling High Taxes: Wanjigi Presents Ruto with Solutions for Kenyan Relief
Jimi Wanjigi, a candidate for the presidency in 2022, expressed reservations regarding the Finance Bill 2023 on Tuesday, May 16.
In an interview with the media, the businessman-turned-politician criticized portions of the bill, arguing that it would be detrimental to the already-burdened citizens.
Wanjigi noted in his argument that the proposals if passed, would impact his economic recovery plan.
In addition to finding flaws in the Bill, Wanjigi opined that revenue collection was low, citing the falling exchange rate as a negative influence on his administration.
Wanjigi included the stock market, from which he observed investors fleeing, and the bond market, which he stated had been affected by the current market volatility, among other indicators.
In addition, Wanjigi, whose bid for the presidency was quashed by the electoral body, stated that Ruto’s administration had been affected by Moody’s rating.
ALSO READ: Raila Lawyer Accuses Ruto of Illegal Firing of Health PS
This occurred after the New York-based global rating agency downgraded Kenya’s long-term foreign currency and local currency issuer ratings from B2 to B3.
“Disaster is here! It will not occur. It is present; we simply refuse to acknowledge its presence. We have never been in a location like this before,” Wanjigi stated.
Jimmi urged President Ruto to adopt certain strategies employed by former President Mwai Kibaki to address certain challenges and free Kenyans from the yoke of taxation.
Wanjigi urged Ruto to increase the tax bracket. Wanjigi noted, in the context of his proposal, that allowing multiple companies, both domestic and foreign, to establish in the country would expand the revenue collection bracket.
The businessman stated that Kibaki expanded the tax bracket by permitting media conglomerates to acquire licenses and other telecommunications companies to enter the local market.
“Mwai Kibaki did not increase taxes by pressuring current taxpayers. What Mwai Kibaki did was bake a bigger cake. During the Moi era, he eliminated what he deemed to be impediments to development. “By doing so, he increased the number of individuals in the tax bracket,” Wanjigi explained.
“The current proposal does not expand the tax bracket; rather, it squeezes us,” he added.
Wanjigi advised Ruto to renegotiate debts despite expanding the tax bracket.
The presidential candidate for 2022 insisted that a reduction in maturing debts would assist Ruto’s administration in allocating funds to economic recovery.
“I heard the President say that we will not default as if it were a bad thing. It is, but it may be the only option as we are currently digging a hole. And now, under this default, you must renegotiate new terms,” he advised Ruto.
ALSO READ: Senators Sakaja and Kihika Face Arrest for Ignoring Summons
He criticized the previous administration for accumulating debts that impeded Ruto’s service delivery.
President Ruto had previously stated his position on the country’s escalating debt and assured Kenya that his administration would not default on its loan.
Our country will not default on its debt. I wish to provide you with my assurance. Our nation will not default on our debts. Ruto assured investors and Kenyans in a joint media interview on January 4 that “we have put the brakes on any further borrowing.”
In a second joint interview with the media on Sunday, May 14, Ruto refuted claims that his government had increased taxes.
In particular, he defended the affordable housing fund, arguing that it was not a tax but a levy.
Several Kenya Kwanza leaders, including Kikuyu Member of Parliament and leader of the Majority side in the National Assembly Kimani Ichung’wah and Ndindi Nyoro, echoed his sentiments, stating that the Finance Bill 2023 was the panacea for reviving the economy.
Tackling High Taxes: Wanjigi Presents Ruto with Solutions for Kenyan Relief
HEY READER. PLEASE SUPPORT THIS SITE BY CLICKING ADS. DON’T FORGET TO HIT THE NOTIFICATION BELL FOR MORE UPDATES AROUND THE GLOBE.
