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Thursday, May 16, 2024 –A section of President William Ruto-allied politicians and diplomats have asked him to reduce the taxes he has imposed to Kenyans.
Latest to make remarks on this matter as proposed in the Finance Bill 2024 is his close ally Kimani Ichung’wah who has now asked that the current Value Added Tax VAT be reduced from 16 percent to 15 percent.
The National Assembly Majority Leader claims that a reduction in the VAT will help increase compliance and economic growth.
Addressing this on Kenya Television Network KTN show on Thursday morning, the United Democratic Alliance UDA Party elected Member of Parliament argued that, from his accounting profession, he has the view that slashing down the current VAT by one percent would be helpful and could have a quicker positive impact to the economy.
The Majority Leader in the National assembly further added that this, together with the elimination of tax exemptions and zero-rated products, could make revenue collection exercise much easier with about hundred percent compliance.
In his address on the television on Wednesday May 16 morning, MP Ichung’wah noted that strategic fiscal measures would help reduce tax burden to the local Kenyan.
The politician added that the current situation only favours the affluent in the society and leaves the poor taxed even more.
“If you were to ask me if we were to reduce even the standard VAT rate from 16 per cent to about 15 per cent, then do away with all the tax exemptions on VAT and zero-rated items. We would collect more money.”
The proposed adjustments come in the wake of the Finance Bill 2024, which aims to introduce VAT, raise excise taxes on various items, including M-Pesa transactions, airtime, and bank transfers. The government seeks to generate an additional sh 323 billion in taxes for the upcoming financial year.
President William Ruto has, in his latest resolve and announcements, promised to increase local tax collection from 16 percent to 22 percent.
However, MP Kimani Ichung’wah has asked him to implement this slowly over time.
In another interview on Citizen Tv hosted by Jeff Koinange on Tuesday night, United States of America U.S.A Ambassador to Kenya, Meg Whitman, advocated for expanding the tax base through job creation rather than raising tax rates.
“When more people have a steady income, they can pay taxes so you expand the number of people and not just go for the same people,” she stated.
Asked why she has been involved in Kenya’s politics all through when her role should be to stick to diplomatic roles, she defended that she is a political figure who once ran for the governor in her home California but lost.
“I got involved in politics, ended up supporting Hillary Clinton and then Joe Biden,” she noted on JKL show.
President Joe Biden, after he won, he called her and said he would like Meg to be an ambassador for USA in Kenya; what Meg agreed with.
