Azimio leader Raila Odinga has advocated for a thorough reassessment of the stringent provisions within the Finance Bill 2024, emphasising that Kenyans should not be subjected to further hardships in the approaching financial year.
In an appeal to the National Assembly, Mr Odinga warned that the proposals in the Bill could devastate the already fragile economy.
He insisted that Parliament must amend the extreme proposals outlined in the Finance Bill 2024 to prevent the errors and hardships endured under the Finance Act 2023 from persisting into 2025.
“Parliament must inject radical surgery on the outrageous proposals in the Finance Bill 2024. We will not accept the mistakes and pains inflicted on Kenyans by the Finance Act 2023 to be continued into 2025 through Finance Bill 2024,” Mr Odinga stated on Friday, June 8.
“The people and the country will be worse off at this time in 2025 if the Finance Bill 2024 does not undergo a radical surgery,” he added.
The opposition leader expressed concern that inconsistent tax policies hinder business growth, calling the Bill regressive and harmful to the poor, who will be hit hardest by rising costs of essentials like food, cooking oil, and money transfers.
Among the contested proposals are increasing the money transfer fee from 15% to 20% and imposing a 16% VAT on foreign exchange transactions.
Odinga criticised the President William Ruto-led government for making it costlier to send and receive money via phone and deterring remittances from the diaspora. He also opposed taxing bread at 16%, noting its necessity in most households, and warned that a proposed 25% Excise Duty on edible oil would raise food costs, affecting many people, including casual workers.
Also, he labelled many tax proposals as insensitive and cruel, particularly criticising the increase of Import Declaration Fees from 2% to 3%, which would raise the cost of goods. The proposed 2.5% motor vehicle tax was called punitive and a case of double taxation, given that vehicles are already heavily taxed.
Odinga also condemned the introduction of an Eco levy on diapers, saying it would disproportionately impact the poor, who typically have more children.
The ODM leader labelled Ruto’s tax plan “a disaster in the making”.
”The Finance Bill 2024 fails the taxation dictums of predictability, simplicity, transparency, equity, administrative ease and fairness.
“It is worse than the one of 2023, an investment killer and a huge millstone around the necks of millions of poor Kenyans who must have hoped that the tears they shed over taxes last year would see the government lessen the tax burden in 2024,” he stated.
His opposition comes as the National Assembly Committee on Finance and National Planning continues to gather public feedback, with many stakeholders calling for the Bill’s rejection.