Sneaking in high taxes a betrayal of citizens
It is quite unbelievable that the government could be considering bringing back the “punitive and oppressive” tax proposals that sparked protests in which nearly 60 young Kenyans were killed, several hundred others seriously injured and property destroyed. This would be a callous disregard for the citizens’ feelings on the high taxes.
Indeed, none other than President William Ruto announced the withdrawal of the then proposed taxes. After dropping the controversial Finance Bill, 2024, he warned about budget cuts as the funds that had been expected would not be forthcoming. So why would the leadership now betray the citizens, who are already reeling under a high cost of living.
The National Treasury appears determined to sneak back the hated taxes that were scrapped after the deadly anti-government protests in June and July. In an apparent snub of the public feelings, the Treasury has given highlights on the yet to be published Tax Laws Amendment Bill, which contains, among others, high taxes on bread, phone calls and data rates.
Interestingly, this follows a meeting last week between Treasury officials and their IMF counterparts in Washington, DC. The lender has been nudging the country to increase tax collections in order to reduce borrowing.
The Treasury must tread carefully to avoid reigniting public anger by reviving those unpopular taxes. Treasury Cabinet Secretary John Mbadi says the new taxes are needed to cut back on borrowing and fund the cash-strapped counties.
Ironically, CS Mbadi was a direct beneficiary, as his own appointment was part of the changes initiated following the protests. And he was himself a vocal critic of the shelved Bill before he became the Treasury CS. He now claims the new tax proposals were a result of public participation.
The Treasury has proposed to raise excise duty on internet services and phone calls to 20 per cent from 15 per cent, setting the stage for higher charges by the telcos for their services.
The hard-pressed citizens should be spared these high taxes, which will make their lives even more unbearable.
