Tax Burden: Raila Claims Kenyans Overburdened as Azimio Counters Finance Bill 2023
Raila Odinga, the leader of the Azimio la Umoja Coalition. Has declared that he will rally his supporters to oppose the proposed Finance Bill 2023. When it is presented to Parliament.
He referred to it as a “promise to strangle and suffocate the con artists from whose necks Ruto promised to remove the rope” and stated that he would do everything in his power to prevent the passage of the bill in the National Assembly.
The Azimio leader argued that Kenyans are being over-taxed and that Kenya Kwanza’s internal weaknesses are to blame.
Raila stated on Monday during a press conference, “We will instruct our members to pause this bill’s provisions.”
“We want the people of Kenya to understand that if Kenya Kwanza uses its hired majority to pass the bill as is, it will be a Kenya Kwanza bill,”
Increasing the Turnover Tax to 3 percent. according to Raila, will negatively impact small and medium-sized businesses. By taxing their gross sales regardless of whether or not they generate a profit.
Instead, the leader of Azimio proposed keeping the tax at 1%, applicable to gross sales of Ksh.1 million or more.
“County governments are already taxing these businesses,” he added.
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The leader of the opposition stated that the proposed income tax adjustment will impose additional burdens on Kenyans, the majority of whom have not received a pay raise in the past five years.
He argued that direct taxation would reduce the country’s disposable income and have an effect on all economic sectors.
Raila stated, “As the Kenya Kwanza reduces local disposable income, it reduces the demand for local goods and services.” It leads to increased unemployment and destitution.
Simultaneously, he attacked the proposed Housing Fund, claiming that the proposed 3% salary deduction to fund affordable housing is “irrational” given that the majority of employees are already experiencing reduced income due to high living expenses.
“We find it peculiar that everyone is expected to pay, even though not everyone qualifies for the proposed affordable housing regime. This is an illegal loan,” added Raila.
Additionally, he questioned the rationale behind the proposed Tax Appeals Tribunal, which would require individuals or businesses to deposit 20% of the disputed amount with the KRA before the case could be heard.
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“This is another aspect of the regime’s illegal borrowing. It is susceptible to abuse by disloyal KRA agents. It will affect companies’ cash flow. We oppose it,” he said.
During his address, Raila criticized the proposal for increased VAT payments and the increased excise duty on imported cement.
In addition to the issues highlighted by Azimio, the proposed taxation of beauty products also makes the list.
According to Raila, the proposed 316 percent increase in wigs, false beards, eyelashes, human hair, and artificial nails, among other items. Will hurt women and young people currently employed in the industry.
Raila also claimed that the government’s proposal to impose a turnover tax on the monetization of digital content would suffocate innovation.
“Youth who create a digital platform or content will be required to pay 15% tax, as opposed to paying no tax at present. As a nation, we will stifle innovation and leave our youth with too few, if any, options,” he continued.
Tax Burden: Raila Claims Kenyans Overburdened as Azimio Counters Finance Bill 2023
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