This archive report was first published on 11 May 2020.
As Kenya grapples with the economic fallout of the COVID-19 pandemic, the National Treasury's latest proposal to review tax laws and introduce new taxes is a step in the wrong direction.
President Uhuru Kenyatta's tax relief measures in March aimed to cushion citizens from the economic pains of the pandemic, including exempting low-income earners from paying taxes and reducing income tax and Value Added Tax (VAT).
However, the Tax Laws (Amendment) Bill, 2020, tabled in Parliament by Treasury Cabinet Secretary Ukur Yatani, seeks to lift exemptions on key products and services, introduce tax on liquefied petroleum gas and bonuses paid to low-income earners, and raise Sh128 billion in revenue.
This move is a clear attempt to claw back the relief given to citizens and will ultimately lead to higher costs for Kenyans and a substantial reduction in their incomes.
With the economy already reeling from the pandemic, the government's decision to introduce new taxes will only exacerbate the suffering of millions of people engaged in informal jobs and businesses who have lost their means of income.
It is imperative that Parliament rejects the proposed taxes in totality and saves the public from further financial distress.
Published on May 11, 2020
