‘Finance Bill 2023 will help the country reduce debts’ – Muthama
Former Machakos Senator and current member of the Parliamentary Service Commission (PSC) Johnson Muthama says the proposed Finance Bill 2023 is aimed at reducing the government's debt burden.
In a statement, Muthama said the country should start shying away from debts and donors to finance its development projects, and instead develop its own mechanisms of financing development.
"As a country, we must start to have an honest conversation on how best to finance our development programmes without incessantly relying on donors and other people's savings," Muthama said.
"For years, we have had to bridge our budget deficits with loans which upon maturity, has led to resource constraints and as patriotic citizens, we ought to support the government in its initiatives to turn around the economy."
According to Muthama, the Finance Bill 2023 carries the cure to the country's ballooning debt, which crossed the Ksh9 trillion mark for the first time in December 2022. In June 2022, the Parliament set the debt ceiling at Ksh10 trillion.
"The Finance Bill which is now undergoing public participation has proposed a raft of measures the Kenya Kwanza administration under the stewardship of President William Ruto will use to cushion the country from the dens of debts. A patriotic citizen is one who pays taxes to promote quality services delivery by the government and the same government has to be oversighted to use the resources prudently for the wellbeing of all citizens," Muthama stated.
He has also called on Kenyans to give suggestions that will make the Bill better before it is passed by the Parliament.
"Let us objectively look at the Finance Bill, and provide suggestions that will make the Bill more citizen-centred and pro-development," he added.
Finance Bill 2023 proposals
The proposed Bill seeks to implement several changes such as a change in the turnover tax where the Bill proposes that the tax is applied on sales from as low as Ksh500, 000. The tax is being raised from 1 per cent to 3 per cent.
The Bill also proposes a deduction of 3 per cent of basic salaries to finance the affordable housing scheme.
Also proposed in the Bill is an increase in the pay-as-you-earn (PAYE) taxes from the current 30 per cent to 35 per cent on those earning Ksh500,000 and above.
