CSOS Uproar On The Proposed Financial Bill 2024
CSOS Uproar On The Proposed Financial Bill 2024
The CSOs under the umbrella of Okoa Uchumi dedicated to strengthening public participation and social accountability in the public debt process is deeply concerned by the Government’s recently released estimated budget for the 2024/25 FY and the Finance Bill 2024.
According to the CSOs the current trajectory of rising taxes poses a dire threat to citizens’ access to vital services, essential for the full realization of their fundamental rights and freedoms. As staunch advocates for human rights and the interests of marginalized members of society, they express profound concern over the escalating cost of living, compounded by punitive, unattainable, and unpredictable tax policies.
It is deeply troubling to witness significant budget reductions averaging 11% in critical sectors such as education, research, social protection, disaster response, and agriculture. Meanwhile, certain Ministries, Departments, and Agencies (MDAs) within the executive are experiencing budget expansions. This imbalance not only jeopardizes the well-being of citizens but also undermines the government’s duty to prioritize essential services that uphold the dignity and prosperity of all individuals.
CSOS Uproar On The Proposed Financial Bill 2024
In a statement they say “Whereas, Article 10 of the Constitution identifies public participation as one of the fundamental principles of good governance, it is very disappointing to be invited to a tokenistic, meaningless and exclusive public participation exercise as currently conducted by the government. It is a worrying trend that citizens’ voices do not find their way into the final policies approved by parliament despite being invited to give their opinions.”
They added that there have been no deliberate efforts by parliament to allocate sufficient resources to facilitate constituency based all-inclusive public participation to afford Kenyans from all walks of life an opportunity to share their opinions and views.
Without addressing the teething problems bedeviling our public participation framework and total disregard of public opinions by the parliament, Kenyans will continue to be taken for a ride and their rights violated with impunity.
The Finance Bill, 2024 The non-citizen-focused budget is proposed to be financed by increased taxes to Kenyan taxpayers without commensurate investment in apt service delivery; thus, the burden on Kenyans is set to further worsen if the Finance Bill, 2024 is passed into law.
The Finance Bill, 2024 proposes unfair, unjust and harsh clauses which will be to the detriment of the common mwananchi. The Bill is keen to impose heavy tax burdens on the common mwananchi by attacking every aspect of their lives, from the food they eat for health and spiritual communion, to the cars they use to travel either as commuters or owners, the communication sector that is a major source of social cohesion and health, and the banking sector, particularly mobile banking, that drives most economic transactions in Kenya. A Kenyan taxpayer is staring at a short, miserable life with a raft of violations from the government.
Despite the government’s elaborate plans to increase the tax burden, they have not reciprocated the same energy towards the fight against revenue leakages through corruption, wastage, illicit trade and money laundering.
The coalition members, oppose a number of the proposals that are problematic and inconsiderate of the current economic situation
- Enshrining a proposal exempting KRA from the constraints of the Data Protection Act in accessing taxpayers’ data
- Proposal to remove gluten bread and unleavened bread from VAT while also removing VAT zero rating on the supply of ordinary bread, milk, cream and all inputs and raw materials produced both locally and imported.
- Proposals to introduce a tax on motor vehicles at 2.5% of the value of the vehicle. The implication of this is that it is likely to increase the tax burden of citizens.
- The proposal to empower KRA to require taxpayers to integrate eTIMS. Failure to comply with this requirement will result in a monthly penalty not exceeding Kshs. 2 million. This will mainly target and hurt small businesses since large businesses are already integrated with KRA systems.
- The proposal is to increase the import declaration fee from 2.5% to 3%, which will increase the cost of imported goods.
- Proposal to increase the excise on telephone and internet data services. This comes at a time when the government declared its support for the digital world. Imposing such a tax will hinder many from accessing information purposes such as education and current affairs and will also impact the ease of communication.
Okoa Uchumi will continue amplifying their proposals as submitted to parliament by the people. Additionally, the campaign will mobilize all Kenyan citizens to inform their members of Parliament on their stand on the finance bill 2024.
