Azimio’s fight to amend disputed Bill
Members of Parliament allied to Azimio la Umoja Coalition have lined up a number of amendments to the controversial Finance Bill, 2023, which comes for the crucial Third Reading tomorrow in what is expected to be another showdown.
Tomorrow is expected to be the D-Day for the Bill on which President William Ruto has staked his vision on creation of jobs, provision of housing and expansion of manufacturing.
Among the clauses Opposition MPs want to amend is the one seeking to introduce a three per cent housing levy they want deleted completely.
National Assembly Minority Leader and Ugunja MP Opiyo Wandayi yesterday told People Daily that Azimio has also prepared an amendment to delete the clause on petroleum levy that seeks to increase Value Added Tax to 16 from the current eight per cent.
“We have prepared a raft of amendments but the housing and petroleum ones are key to us. Members have come up with several others which will be made public on the D-day,” Wandayi said.
He spoke even us as President Ruto defended the Bill, saying the housing levy will cushion the country from external debts.
He said their resolve to put up housing units would create jobs and other opportunities to over one million youths annually while getting rid of informal settlements.
He accused critics of the legislation of deliberately misleading members of the public.
“We should choose to either emulate Mwai Kibaki who expanded the tax-base and raised sufficient funds to grow the economy or take the route of handshake regime that incurred external debts from to the tune of Sh9 trillion. We have chosen the route of taxation,” he said at a church function in Kakamega yesterday.
However, the Minority side might find it rough in their attempt to make the amendments, since only a single majority is required to pass or defeat a motion. The ruling Kenya Kwanza has total control of the House with over 250 members.
Majority Leader Kimani Ichung’wah confirmed that the Third Reading will take place between Tuesday and Thursday.
Ichung’wah hit at Wandayi, who he claimed had last week said the Minority side will not be bringing amendments to the Bill.
“This is a clear indication that the Opposition members have either not read the Bill or are just ignorant,” Ichung’wah said.
The Kikuyu MP further claimed that a mole within the leadership of the Minority had revealed to him that the Opposition members were planning to use the amendments to delay passage of the Bill.
“I am aware of your plan to derail to process by introducing frivolous matters. I plead with you to remain orderly and adhere to the House rules even as you execute your amendments,” Ichung’wa added.
Ichung’wah further stated that no member of the National Assembly should miss the session.
Harsh times
Minority Whip Junet Mohammed on the other hand urged Azimio members to turn up and attend all plenary sessions. “Now that we are all in agreement, it is official we have the Finance Bill debate on Tuesday. Let us all attend,” he said.
MPs last Wednesday voted in favour of the Bill, paving the way for its determination by the committee of the whole House.
It followed an intense debate in Parliament to discuss the proposed tax measures which 176 MPs voted to endorse at the second reading stage while 81 MPs opposed. MPs from both sides of the political divide accused each other of exhibiting selfishness for failing to give priority to issues affecting Kenyans.
The MPs were sharply divided on the housing levy, which the Departmental Committee on Finance and Planning has proposed to reduce from three to 1.5 per cent as well as the petroleum levy that has been retained at 16 per cent.
While Kenya Kwanza MPs claimed their counterparts were only thinking about themselves, especially on the housing levy after benefitting from mortgages from the Parliamentary Service Commission, those from Opposition hit back, accusing their counterparts of bringing draconian laws that will have negative effects on poor citizens. Ichung’wah told the House to debate the Bill with facts and not to mislead Kenyans.
Committee chairman Kuria Kimani defended various tax proposals in the Bill, including the proposed tax on content creators which has been reduced to five percent up from 15 per cent, saying even other employees such as, nurse’s teachers’ pay taxes.
“Clause 24 introduced Digital Content Monetisation at a withholding tax of 15 per cent. If you compare it with other professions that legal, accounting fees...all these particular fees are at three per cent, that’s why we found that charging digital content creators at 500 per cent more was unfair and punitive to this growing sector,” he said.
